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Why do some very low values domain sell for such high prices?

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Yasin.ismail

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Hi.

I've spent a while watching domain auctions on websites such as GoDaddy and Dropcatch. I've tried to sell several myself with no luck.
But one thing I just can't get my head around is when I see domains such as e.g. realestatehomesuk.com valued at $800 sell at auction for $4000 with 87bids. I made that last bit up...but you get what I'm saying.
Why are so many terrible and low valued domains receiving so many bids and selling for such high prices?
I find it especially bizarre when I have domains like energy.supplies which GoDaddy value at $3910 and which I haven't received a single bid on in 12 months!
 
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What metrics are you looking at on those domains. Probably traffic. That has value to some investors.
 
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Maybe they have been used in the past and have high Domain Authority. Might then be worth buying for backlinking. Might have lots of backlinks itself, which are also useful.
 
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Maybe they have been used in the past and have high Domain Authority. Might then be worth buying for backlinking. Might have lots of backlinks itself, which are also useful.
Google can ruine any score and any backlinks so it doesnt worth such money.
 
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Google can ruine any score and any backlinks so it doesnt worth such money.
They are worth money to some people. There's no reason for Google to penalize you if you don't do anything wrong. Even if Google does penalize you, some people can make a ton of money in the meantime. e.g. buy domain for $1,000, set up website, sell $5,000 worth of backlinks, giving you $4,000 profit. If Google penalizes you it doesn't matter because you already made money. Move on to the next one. There are plenty of people that do this. So, the domains are indeed valuable. Why wouldn't they pay $1,000 if they know they can make $5,000 profit?
 
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What metrics are you looking at on those domains. Probably traffic. That has value to some investors.

It's worth noting that some metrics - page views in particular - can be scammed, depending on the reseller/ auction site, so be wary of trusting them unless you understand how those metrics were compiled.
I've also seen years worth of page view metrics mysteriously vanish on domains that I have had on a number of auction sites when they have upgraded something.
 
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Thank for your replies! What are backlinks?
 
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