At first thought, the problem I saw with this domain is that it seemed too generic to a fault, as 99% of towels in the world are made out of cotton (besides paper towels of course) and most people don't include cotton when they're searching for bath/kichen/beach towels online because there isn't any alternative to cotton towels that most people are aware of (though bamboo towels seem to be becoming more popular).
After digging up similar sales I see that other towel domains with low search volume have sold for high prices from $x,xxx to $xx,xxx. So this is one of those domains in which I can't put an accurate appraisal on.
Link to similar sales and keyword search data:
http://i.imgur.com/khIoEi6.png