Domain Broker - Worth it for $xx,xxx purchase (not sale)?

[Truth]

EDIT: After several answers and discussions, I have come to the conclusion that you do not need a domain broker for a single purchase DN transaction. Instead, you should consider them when (note: this only applies to purchasing, not selling domains):

a) You have a set budget and are looking for a premium domain that meets your criteria (i.e: not one specific domain)
b) Feel you cannot adequately negotiate such that you'd waste the 15 - 20% broker commission
c) Aren't confident in doing the transfer process for yourself

Hello everyone,

I've searched forums for "domain broker" and almost all threads are on selling domain names or a portfolio of domain names. I'm interested in buying a premium, one word dictionary / generic domain name that I'd be willing to pay up to around $30,000 for. I am an end-user. Would it be worth it for me to find a domain broker for BUYING a domain name, especially given I have not engaged in domain name second-market activity before? It's an interesting dynamic, given the broker is actually encouraged to buy it at the highest price possible within your budget. I have found a ton of opinions on using domain brokers to sell names, but not on buying them. Thanks.

P.S (skip if not going to warn me): Before the crusade of warnings come in about making a high value purchase, I want to say this: The domain name is worth at the lowest $1x,xxx and likely worth around $5x,xxx based on comparable sales for similar domain name length, brandability, and being a decent, albeit not entirely relevant, keyword (100k - 1m monthly searches + Alexa ranking despite no developed website all from type-in traffic, sub 10 million ranking). It's the type of name I wouldn't mind owning for 10+ years even if my intended use for it fails. It's not a banned domain. If you want to issue a warning anyway, that's fine, but I don't intend on attempting to purchase this name until I've slept on it for a while and have had adequate time to think it over. Until then, I'd like the question above answered. Thank you.

 

[Lox]

@Truth Partnership % + some cash?

 

[Aspiring Billionaire]

Hi Aspiring,

Nice to see you again. I'm fairly confident the value of this domain is beyond my current budget, but I could raise capital if the owner settles on lower end of range of valuation. I'll likely contact them and see how it goes later on. I have no issue with emotions when it comes to investing. That said, the larger the investment becomes, the more certain I want to be of its resale value in case of failure so I'll be doing more reading.

Hi again.

What I meant by saying "emotions" is that you may not be able to (for example) counter aggressively enough while negotiating, or be able to wait a couple of weeks before replying to the owner to let him know that you're not impulsive. You've already put the name on a pedestal, which is not always a good perception to have when negotiating as a buyer.

I don't doubt your ability to negotiate, nor am I discouraging you from reading more. But (just like within your industry) specific advice from domainers with "actual experience" in a specific matter will trump any similar-topic reading. The advice and guidance is free after all.

See this post as an example of how advice from the right people can help : https://www.namepros.com/threads/my-first-big-aftermarket-buy-should-i-go-for-it.994650/

Good luck.

 

[Cdomains]

If you decide to go that route, pre-negotiate a flat fee with the acquisition broker - that way, their goal is to get the deal done, not to jack the price up for a %.

Great advice to keep from paying too much!!

 

[Truth]

Yes I read some of that thread, was educational. I think the name is awesome. That said, I can think it's awesome and not buy it . I disclosed the DN to Bannen because he asked and seems like a reputable member here for his advice. He gave me a realistic opinion which has set my expectations in the appropriate zone for any future actions I take. I'll come back for more advice if I take further actions. My initial inquiry has been answered more than adequately though: I do not need a domain broker for this type of transaction. Thank you everyone.

 

[Aspiring Billionaire]

Yes I read some of that thread, was educational. I think the name is awesome. That said, I can think it's awesome and not buy it . I disclosed the DN to Bannen because he asked and seems like a reputable member here for his advice. He gave me a realistic opinion which has set my expectations in the appropriate zone for any future actions I take. I'll come back for more advice if I take further actions. My initial inquiry has been answered more than adequately though: I do not need a domain broker for this type of transaction. Thank you everyone.

That's an awesome attitude to have, and best of luck.