Sedo Suggested Price $1,999... Should I Trust it?

Simple rule is Never use appraisal values from any software program.

Earlier this year, someone got a steal on a 3-letter .com (DWN.com) due to the seller trusting Sedo's "suggested price" of €2,999 Euros and setting that as the "Buy It Now", see:

https://www.thedomains.com/2017/03/28/sedo-weekly-sales-may-contain-value-buy-year/
https://www.thedomains.com/2017/03/29/sedo-lead-seller-dwn-com-price-low/

So, one shouldn't trust automated domain valuation systems.

korganian said:

Simple rule is Never use appraisal values from any software program.

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What are they good for then?

Don't use the Sedo appraisal tool, it's not accurate and it's really for noobs imo.

I've had LLLL.coms worth $x,xxx get appraised there for like $200 (and yes I sold them for four figures.)

LiamShiff said:

What are they good for then?

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They are great for the registrars because they cause novice domainers to waste enormous amounts of money registering worthless domains.

creataweb said:

Don't use the Sedo appraisal tool, it's not accurate and it's really for noobs imo.

I've had LLLL.coms worth $x,xxx get appraised there for like $200 (and yes I sold them for four figures.)

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I agree, but just out of curiosity, all the cases that have been mentioned are when the appraisal tool undervalues the domain... does it ever overvalue it?

korganian said:

They are great for the registrars because they cause novice domainers to waste enormous amounts of money registering worthless domains.

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I once read that these tools give you the pure keyword value of your domain based on pretty basic metrics like the number of search results and such, as opposed to the full value of the domain which includes the keyword value... Does that ring a bell? Or is it pure BS as well?

LiamShiff said:

I once read that these tools give you the pure keyword value of your domain based on pretty basic metrics like the number of search results and such, as opposed to the full value of the domain which includes the keyword value... Does that ring a bell? Or is it pure BS as well?

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See post #2 in this thread.

LiamShiff said:

What are they good for then?

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Making newbies waste money on garbage domains making GoDaddy etc... rich. Making newbies underprice their domains at aftermarkets leaving money on the table.

You can't automate an appraisal on a unique item. 2017 Honda HRV AWD sure as thousands exist so nothing more than condition, model, mileage and a trip to KBB.com Only 1 .com domain exists of any term so you can look at past similar sales, how good is the domain, how much profit margin in the product or service the domain covers, gut etc...

If I ask $50 for a domain I'll get it, If I ask $5000 for that same domain I'll still get it. So very dangerous to trust an automated tool to predict what you should buy or what you should sell for.

As soon as I hear automated appraisal Estibot etc... I think the owner should just write Newbie on their forward in black marker and it's not just newbies that tout automated appraisals as having value I've seen some old timers parade them around like the "metrics" they show do more good than harm. Do more good for the registrars in useless registrations but hurt more domainers when they label garbage as having value and label value as garbage. The hurt comes from newbies registering hundreds of domains that will never sell and when they land on a gem they sell it for $20 at a forum instead of $4000 to an end user. I've sold many many domains over the last 15 years that an automated appraisal tool would say $0-xxx and they all sold for high xxx-xx,xxx. Success rarely comes automated, put the work in.

Judgement, common sense, and a little estibot.

@Beezy @Shuttlepro @SpareDomains Thanks for the info

I don't trust these appraisal systems at all.

The reason I am asking is to weed out all the things that can make you fail (automated appraisals, certificates, etc.) in order to fully focus on the important things.

Really appreciate the feedback @GeorgeK @korganian @creataweb

nice to see many VIP members respond! That's why I love NP!

LiamShiff said:

all the cases that have been mentioned are when the appraisal tool undervalues the domain... does it ever overvalue it?

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Yes, most of the time the domains are overvalued, because they have virtually zero chance of selling. Especially when they are in oddball extensions. Thus they give false hope to newbies who will end up wasting a lot of money on worthless domains. In that sense I think they are doing more harm than good.

Check sales data of .tv domains on namebio.

If this keyword works well with .tv extension maybe you are in this range or even more. But it has to be perfect match like amazing.tv, sports.tv, etc.

1Darko said:

Check sales data of .tv domains on namebio.

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I did. Most names are sold on Sedo and most of them are completely unrelated to the .tv extension

@kite26

For example, here are the sales results for 5-letter domains .tv
Bible.tv $5K
Grill.tv $5K
etc. (see the link) https://namebio.com/?s==EDOyUjN1QTM

LiamShiff said:

I did. Most names are sold on Sedo and most of them are completely unrelated to the .tv extension

@kite26

For example, here are the sales results for 5-letter domains .tv
Bible.tv $5K
Grill.tv $5K
etc. (see the link) https://namebio.com/?s==EDOyUjN1QTM

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Yes, all these are very strong keywords. For example, Bible.tv has value because it is perfectly focused on the subject of religion. Strong keyword, strong relation .tv extension.

GeorgeK said:

Earlier this year, someone got a steal on a 3-letter .com (DWN.com) due to the seller trusting Sedo's "suggested price" of €2,999 Euros and setting that as the "Buy It Now", see:

https://www.thedomains.com/2017/03/28/sedo-weekly-sales-may-contain-value-buy-year/
https://www.thedomains.com/2017/03/29/sedo-lead-seller-dwn-com-price-low/

So, one shouldn't trust automated domain valuation systems.

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i see at namebio, dwn.com sold for 3,226 USD ? what............................................... ?

eko prasetio said:

i see at namebio, dwn.com sold for 3,226 USD ? what............................................... ?

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That was the US Dollar equivalent of the Euro transaction price. Obviously the Sedo "suggested price" was far too low.