Pitfalls of buying a house spontaneously on first inspection?

someone i know bought a house at auction just on the spot without prior knowledge of the house or further inspections eg from archicentre.

Its in brighton, near the beach, a great well build spacious house possibly build around 1970sbut renovated and beautiful.

They say noone else was bidding and they got a good price for it.

How much could have gone wrong besides finance which i presume they had in place. could there have been really costly hidden problems that could have made them regret?
eg finding out later it had
termites ( do they exist in bayside melbourne?)


I had a mate that boughT a home on the location, and ucv , from 400kms away sight unseen, but he knew all the numbers, some do, i would too if i knew the burb.

but i ask folks if they remember the wall colour and most do not remember this straight after an inspection too!
Mind you. Its in brighton. If they are wise investors, and got it for a good price, they wont lose money. Maybe all these problems will allow them to realy capitalise on the location.