question GoDaddy Appraisal Logic

[VivifyDomains]

I know automated appraisal tools are mostly unreliable, but I thought they at least used some logic. For Godaddy, I thought they use data from "similar" sales to come up with the figure.

I searched this domain name and it's saying it's worth less than $100, but all of the examples it gives are way above this. Two of the examples (creator1 and create1) are even similar in meaning to compose.

Anyone more familiar with the logic the Godaddy appraisal tool uses that could provide an explanation here? The lowest comparable sale is 3 times higher than the appraisal figure, the rest are way above that.

My guess is that there are other sales that the tool is not showing here that are much lower, but why only show these higher sales? Very confusing

 

[Hypersot]

Maybe because the word 'compose' is not that popular?

The opposite of what you describe happens to me when I try to appraise a domain with a 'valuable' word that sells often (it usually says so in the 'why it is valuable' on the right)

Please note that I'm only guessing here. I don't know how GD runs the appraisals.

edit: just tried the word 'transport' with 'transport1.com' and I got a $2361 appraisal. Apparently the word makes the difference and not the '1' at the end.

 

[DigiNames]

I don’t know the exact logic, but I am sure it uses a lot more than just comparable sales numbers. It probably looks at extension, length, mixed characters (letters and numbers), search volume for the term, number of extensions registered, etc. and adjusts the price accordingly.