There are several things to be prepared for in an auction. First of all, it may not take place. If the property is listed for sale now, you may do better with a short sale than at auction. Once a property is at auction, assuming it is a bank-owned property, the lender will be looking to recover fees and costs associated with the auction. I have been at auctions where the auctioneer starts by saying that he will also be bidding for the bank. Bidding starts and once it settles out at a price the other bidders seem willing to pay, do not be surprised if the auctioneer acting on behalf of the bank, bids a whopping price and gavels it out. Needless to say this means that you may only be able to get a property at auction by overpaying. Do everything that you can to avoid the auction event. One thing that you will want to obtain is the term sheet which will include a raft of disclaimers that you will have to agree to as part of any offer or bid. It will be important to close quickly. You will want to have your legal advisor review the disclaimers. The mechanics of bidding at auction will likely include a sizable cashiers check to register to bid. That check will be cashed immediately if you are the winning bidder. So, if you really want this particular home, find a way to engage the owner before the auction, but if you do attend the auction get the input of your advisors in advance.
Hope that is helpful...best of luck.
Chuck Braxton, REALTOR GRI