I love a real live auction. The biggest issues is having the time to go and not having any recourse for returns. But I've learned to never bid on anything that I have not taken the time to closely inspect. Most of the guns I've bought at auction have been good deals for the price. Some have had issues but the price was right considering. Bought a beautiful Savage 99 in 300 Savage this spring for under $400. That was after going to several other auctions and watching similar guns go for well over $600. My last auction find was a real nice pinned model 60 with original grips. Total cost was a little over $400. It also turned out to be a fantastic shooter. The same auction had a nice, 3 digit serial number, Baby Chief listed. Tried to get that one but my limit of $800 for it was done $25 better by another bidder. I'm sure it went to a good home.
I have seen some crazy priced winning bids though. This March I saw a nice, square butt, model 36 go for over $700. Still trying to figure that one out, especially when I've seen more than a few at the local shows with box and papers and lower asking prices.
A good auction has a good entertainment value too. Not talking about the TV auction reality shows, which to me are just about as far from reality as you can get. Besides seeing some ridiculous winning bids, more than once I've seen somebody get pissed off or upset when they couldn't get their low ball bid recognized by the auctioneer on an item that ends up selling for way more. When I start to bid on something, it's usually when the initial flurry of bidding has stalled at a price below my predetermined limit. I figure it's no use fanning the flames.
But, as others have said, the key is to do your research, set your price, and sit back and enjoy the show. And sometimes you end up coming home with something you didn't expect. Last week I made a quick trip to a local estate sale that had a "38 S&W" listed. Turned out to be a well worn 2" model 10 that went for $210. I quit at $200, just wasn't worth it to me. But I did come home with over 40# of coated deck screws and about 200 square feet of 3/4" pine lumber, all for $22!
John