In order to answer your question, I need to know the following:
1. Is this home going to be a flipper, your personal residence or a rental?
2. Do you intend to do the upgrades and when? Are you going to do the work yourself?
3. If this home is going to be a rental, how is the local rental market for that neighborhood?
Example, do you see a lot of "for rent' signs?
Also, I hope you realize that in an auction setting, bidders tend to over bid on properties and you need to avoid over bidding if you were to do a re-bid. If this is going to be a flipper and prices in the area are only up to 79K, I would look elsewhere. After taxes, upgrades and cost of sale, you would be lucky to break even in a quick turnaround situation.