They use an algorithm that calculates the selling price of similar past sales. It's really not reliable.
For one, it's only factoring in the price of domains that actually sold. Even though there are definitely a ton out there that are similar but haven't sold. If you look through the list of domains its using, they're often not really even comparable. It just depends on the available sales history. Often time, the history is spotty or doesn't exist. Often, it includes sales over the past decade, even though I think we can all agree the market has changed.
It's also assuming there is an end user for every name based on keywords. I think people get excited looking at their estimate but don't think about the size of the potential audience and what the chances are that someone will actually fork over money for their exact domain when there are likely cheaper variations out there.
That said, they tend to appraise at $1000-1500 for most domains and if the right user comes along, that's a pretty reasonable bet for any decent domain. It isn't an exact science, and I don't think there's really a way to gauge the market for every single domain. So they do the best they can.
Honestly, for the two domains you listed I think the prices are reasonable. 'Amid Nature' is an actual two word phrase and I can see it used as a name for a business or a targeted marketing campaign. You may even be able to get more from the right buyer IMO. 'Hollywood Views' is pretty niche but again two words that make sense in succession and are actually pretty marketable. My guess is you could eventually sell that one for $2-5k with outbound. It helps that it's got some age - looks like it was initially created in 2008 based on WHOIS.
