bidding strategy for hubzu

[David Mirza]

There is a home that I'm interested in that's listed on Hubzu.  I initially won the auction at $181k but after seeing the property decided it wasn't worth my bid and backed out.  The house was re-listed and I was the highest bidder at 161k but the reserve price wasn't met.  They countered be at 194k, higher than the initial amount that I won the auction at.  My guess is that their counter price is higher than their reserve price.  

The house is now back on Hubzu and there doesn't seem to be much interest in it.  My question is, if the house is still on the site, should I just make sure I'm the highest bidder even if the reserve price isn't met or should I keep increasing my bid by $1k until either I reach the max price I'm willing to pay or the reserve price is met.  What is the best strategy in this scenario?