Stakes are getting higher at Lawrence-area auctions.

No longer is a “good-running” lawn mower or “grandma’s barely-used” Buick the top draw on an auction bill. Auctioneers and real estate agents say area houses and land more frequently are being sold at auction.

“We’re seeing more of those type of auctions than we used to for sure,” said Dennis Snodgrass, sales manager with Coldwell Banker McGrew Real Estate. “People are becoming more open to the idea. As the industry evolves, people are more willing to try new ways to market their property.”

Auctioneer Bill Fair, owner of Lecompton-based Bill Fair & Co., said there had been a national increase in the number of real estate auctions. He said the National Auctioneers Assn. estimated 10 percent of all real estate would be sold at auction this year, up from 5 percent in 1996.

Statistics weren’t available to show whether the number of Lawrence real estate auctions were on pace with the national average. But, Fair predicted he’ll do about 15 real estate auctions this year in Douglas County, up from a long-term average of about 10.

Sellers are attracted to auctions, Fair said, because it normally cuts down on the amount of time a house is on the market.

“There is a definite sale date and that is a great advantage,” Fair said. “The seller can anticipate when he’s going to get his cash and make his next move based on that. He can buy that next house, take that next job in a timely manner.”

An auction also is a good alternative when a seller is unsure of the worth of a property, said Jason Flory, an auctioneer with Coldwell Banker McGrew Real Estate.

“With something that you’re unsure of the upside potential on, an auction is a good way to go,” Flory said. “If you don’t have an auction and you start receiving several offers on the property, it is kind of like playing poker because you don’t know what the other guy is thinking.”

An auction also can make the process simpler for the seller. For example, Fair said, buyers are told they’re getting the property as is, which eliminates typical negotiations over whether a room needs new carpet or whether the refrigerator stays or goes.

Jason Flory, an auctioneer with Coldwell Banker McGrew Real Estate, leaves a home built in the 1800s at 2045 Learnard Ave. The home will be sold at auction Oct. 21. Lawrence real estate agents and auctioneers said Wednesday they were seeing more homes sold at auction.

“It is all very definite terms,” Fair said. “Our contract is only a little over a page long. It basically says we give you clear title and you give us the money.”

Though he wouldn’t say what he charges for a commission, Fair said the amount was similar to the average 6 percent charged by a real estate agent.

No minimum bids are set at house auctions, Fair said, but the seller reserves the right to refuse the high bid.

Real estate agents, though, said sellers shouldn’t think an auction is right for every property. Snodgrass said auctions have done a good job of attracting a large crowd for unique pieces of property. The traditional sale method, though, may attract more interest for an average piece of property, he said.

“The key to any auction is that people have to show up, so you have to hope that on the day you have your auction that people don’t have something else to do,” Snodgrass said.

Auctions also create a lot of issues for potential buyers to consider. Usually, a house is only open for inspections once or twice before the auction date.

Potential buyers need to make sure they have secured their finances. For example, at an auction Fair is having Sunday at 909 W. Sixth St., the high bidder will be required to make a $10,000 down payment before leaving the sale. If for some reason the buyer is unable to complete the sale, the $10,000 is forfeited.

But Flory said sometimes auctions can provide buyers with a sense of reassurance.

“You really shouldn’t leave an auction feeling like you’re paying too much for a piece of property,” Flory said. “You’re basically paying what at least two reasonable people are willing to pay.”