Auction for First-Timer

[Asya Evans]

I am looking into bidding on a home up for Auction. The house has to be completely knocked down due to a fire but the asking price is only a few thousand dollars. I would essentially (hopefully) purchase the property in cash and have to take out a construction loan.  I can most likely start construction sometime next year. Do you think this is too risky of a first investment? 

Also, will I be refunded my minimum bid if I don't win?