Auction is different from normal purchase because it is much more risky. Bidders usually do not have the time to collect info of what they are buying, such as home inspection etc.
The houses for auction are normally far from move-in condition. And they have to pay some cash at the same day if they win the auction.
What could be worse is that the previous owner may still live the house and at this situation, the winner has to do all the legal work to kick him/her out. It is time-consuming and costly.