Since this comes up monthly, here is the checklist I actually run before I let anyone spend money at auction. It takes about forty minutes per domain and it has stopped me buying far more than it has let me buy, which I think is the correct ratio.
1. Reconstruct the history year by year
Open the archive and look at one snapshot per year from first registration to now. You are looking for three things: continuity, language, and topic. A single year of parking is survivable. Three consecutive years of parking means the profile has been re-evaluated at least once without a live site behind it, and in my experience that is where most of the value goes.
A language change is close to disqualifying. It means the domain was flipped for its metrics at least once already, and it means some fraction of those referring domains are pointing at content that no longer exists in a language nobody expected.
2. Check what the links point at, not just how many there are
Export the referring pages and look at the target URLs. If 300 of the 340 point at paths that returned 404 for the last eight years, you do not have 340 links. You have 340 rows in a database that has not been recrawled.
This is the single biggest gap between what the tools show and what exists. The tools are not lying; they are reporting the last state they observed, and for a dead domain that state can be a decade old.
3. Look for the flip signature
A domain that has already been through this cycle usually shows it: a period of real content, a gap, then a thin twenty-page site on a broadly related topic that lasted eleven months, then another gap. That thin site was somebody doing exactly what you are about to do. If it did not work for them, ask why it would work for you.
4. Manual actions and the security tab
Add the domain to Search Console before you bid if you can - you can verify by DNS at the registrar during the transfer window on some marketplaces, though not at auction. If you cannot check beforehand, check within an hour of taking control, because if there is something there you want it on record that it predates your content.
5. Price it as though the history is worth nothing
This is the rule I would give you if you only take one. Decide what you would pay for the name alone - the brandability, the extension, the length - and treat any ranking benefit from the history as an option that might pay off. If the price only makes sense when the history works, you are betting the whole amount on the least predictable part.
I have not run a controlled test on any of this since the March policy changes and I would not claim my hit rate is what it was in 2022. But every domain I have bought that went on to work passed all five, and most of the ones that did nothing failed at least two.
Summary: history is a liability to be checked, not an asset to be bought.