, Staff Writer
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Many home sellers are turning to an auction method known as the five-day process.Some have pressing financial obligations. Others have to move quickly. Some simply don't want to keep their home in pristine condition for weeks or months while an agent parades potential buyers through.Whatever the reason, George Cappony, who runs the Web site 5day.com, said demand is surging among homeowners who want to sell their homes using the practice based on the book "How to Sell Your Home in 5 Days," by Bill Effros ($15.95, Workman Publishing).Here's how the five-day sale typically works.* A home seller spends a week or two cleaning house and preparing the home for a two-day open house.* The seller puts together disclosure documents, including a recent appraisal, an inspection, detailed information about the home and instructions on how the bidding process will work.* On a Wednesday, the seller runs ads in local newspapers and other publications telling buyers that the home will be sold on Sunday evening to the highest bidder. The seller sets a minimum amount that will be accepted; the amount should be below the market value. The idea is to give buyers a chance to bid up to the fair market value.* The seller puts a sign in the front yard and several within a two-mile radius of the home, telling buyers that the home will be sold to the highest bidder.* On Thursday and Friday, the seller takes calls about the sale and explains the five-day bidding process. Potential buyers must wait until the open house to see the home so that everyone has a fair chance to review the property.* On Sunday, shoppers tour the house and inspect the property. They are allowed to place a bid by signing an auction sheet, which is kept in plain view during the open house.* No one is allowed to put in an offer after the bidding period ends.* Bidders are told to wait by the phone at the time the bidding starts.* The seller ranks the bids from highest to lowest and begins calling each bidder, starting with the highest. Bidders are told what the highest bid is and are asked if they want to raise their bid or drop out. The seller repeats the process over and over until there is one bidder left.* Neither the bidder nor the seller is legally obligated until a contract has been signed.
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