NameSilo

GoDaddy valuations changed – they took $3k off one of my names

Labeled as domains in Domain Industry News, started by equity78, May 13, 2020

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  1. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    I was looking at GoDaddy valuations and I had a name in there of mine. I then was doing some stuff for a few hours and came back and hit refresh for whatever reason. The value of the name dropped by like $900, I was like that's weird not that automated appraisals mean much. In a poll I did on Namepros, 0 was the majority of votes given when asked their importance on a scale of 0 to 10. So … [Read more...]
     
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  2. xbank

    xbank xbank Blue Account

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    it seems like happened with everyone .. some of the names got more value and some got less .. strange but I think it's because their engine is getting more powerful with the recent kind of sales

    BUT

    Never trust on bots evaluation .. I believe 20% or even less :)
     
  3. YairDD

    YairDD Top Contributor VIP

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    Yep, they reduced like 20-50% off all of my names, which is crazy, they are supposed to increase the valuation, not decrease it. just shows again how bullshit this is.
     
  4. xbank

    xbank xbank Blue Account

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    I think the mechanism is to show the greater value for the domains which are being held for sale by GoDaddy, this happens when 70% of the domain control is own by them!!!
     
  5. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

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    Yep, after the high appraisal in auctions, you pay a higher price, bham get bidded up on a high appraisal, and then be expected into reselling into a low appraisal. Double Hit.
     
  6. Hypersot

    Hypersot Top Contributor VIP

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    GD valuations change constantly and it's ok since that's how it's supposed to work (ie. they are based off keyword trends and sales).

    I keep track of GD valuations on my domains on a monthly basis and the fluctuation is a very common thing. I'm mainly interested in the fluctuation and not the actual appraisal however.
     
  7. CraigD

    CraigD Established Member

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  8. thedotsol

    thedotsol TheDotSolutions.com

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    By this change, they confirm how worthless their appraisal actually is. I have checked few of my domains that I knew earlier value, and one is down from 2.200 from a day ago to 800. Many .co hand regs went from 500-1000 earlier to bellow 100.
    I understand necessary fluctuations, but what has happened that lowered the value for that much???
     
  9. xcloud123

    xcloud123 Established Member

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    all domain value depends company 's brand,not GD
     
  10. Save Breach

    Save Breach Established Member

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    I had got some 4L.COMs from a mate who bought them @ GD auctions and their value have dropped by 2k-4k,

    Seems like GD likes to inflate valuations for auction domains. I feel GoDaddy appraisals aren't credible anymore, because if a fluctuation is too large than minor, its not reasonable to consider it as a benchmark.

    Yes I have seen minor fluctuations but i m experiencing 2-4k fluctuation for the first time.
     
    Last edited: May 13, 2020
  11. NickB

    NickB Aka MrAcidic VIP Gold Account

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    One of my names went from 12.5k to 3k on Estibot & 5.5k to 1.9k on Godaddy at roughly the same time

    load of bollocks if you ask me.....
     
  12. Amit Kirkole

    Amit Kirkole Established Member

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    in my case,surprisingly prices of some .coms were dropped and .co,.gg,.io increased...
     
  13. CraigD

    CraigD Established Member

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    Obviously a fair amount of speculation here, but of prime interest to me is that a number of comments mention that this phenomenon is not just happening at GD. This makes sense given that we are facing an unprecedented shakeup in all industry.
    Has anyone who has kept monthly records tried to graph and average the results?
     
  14. uzver

    uzver Established Member PRO

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    Just posted in another thread. GD valuation for a domain changed from $4,185 to $3,762 in 5 days.

     
    Last edited: May 13, 2020
  15. CraigD

    CraigD Established Member

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    A constantly changing valuation shows that the algorithm is working as it should, especially in turbulent times. I would be more concerned if it was a static figure.

    I think that one thing many people also fail to take into account is the fluctuation in local currency and how this affects names that are location specific - and I'm not just talking about extensions, but location specific keywords.
    For example, I would expect that my 'Sydney Australia' themed domains 360sydney.com or sydney3d.com would drop in USD value if the Australian dollar fell against the greenback, simply because the target audience /buyer for the domain is likely to be is Sydney Australia and paying Aud.
     
    Last edited: May 13, 2020
  16. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

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    Huge Domains playing with any last second $12 bids on auctions, and forcing a bidding war between bot and human into the hundreds, has caused a fake sense of demand. Unless your aware of how the bot came in you are thinking another party has a real interest in your domain, not a domain warehouse heading to 8 million registrations, and needing to make sure domain valuations stay high so their portfolio values high.
     
  17. EJS

    EJS DomainInvesting.com DomainInvesting.com PRO VIP ICA Member ★★★★★★★★★★

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    According to Paul Nicks (in November of 2019), GoDaddy does not include auction sales into its appraisal algorithm, nor does it list auction results under comparable sales.

    https://domaininvesting.com/godaddy-auction-results-do-not-impact-godaddy-appraisal/
     
  18. TheBaldOne

    TheBaldOne Top Contributor VIP ★★★★★★★★★★

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    Why is ANY domainer worried about what GoDaddy appraisals say? (Or indeed any other supposed appraisal system for that matter.)

    For more than the past 15 years I have always been amazed just why domainers assume that there is any value in the likes of an appraisal by GoDaddy, etc.. Time and time again experienced domainers have tried explaining to newcomers that such appraisals are meaningless and what is worse are valueless.

    If you have a good domain name and you either find a potential buyer or a potential buyer finds you and your domain then the value of that domain will be what the two of you decide and not what such appraisals suggest. If it was otherwise then you might as well get some chicken bones and throw them up in the air and see how they land to determine a similar type of valuation.

    Right, that is my little rant over. :)
     
  19. xynames

    xynames XYNames.com PRO VIP

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    Just depends on the comparable sales which are of course fluctuating. And in some cases the comparables pulled are not relevant which then means that the automated appraisal is inaccurate. When I’ve looked and kept a record of a prior GD valuation I’ve noticed an increase for my domains.

    Any bot valuation is just a start - then you must do your own research.
     
    Last edited: May 13, 2020
  20. uzver

    uzver Established Member PRO

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    I use godaddy comps in the same way I use namebio. More recently I started pulling the data via an API because you get also year of sale which is relevant, of course.
     
    Last edited: May 13, 2020
  21. uzver

    uzver Established Member PRO

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    Another option (which I personally never used, but I’m about to try) is if I want to sell a domain for 1K and it’s appraised value is 3K, why not take advantage and refer the buyer to GD page?
     
  22. Mister Funsky

    Mister Funsky Top Contributor VIP

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    If a domain sale is lost due to a low valuation by the daddy appraisal machine, can that automated valuation system be sued?

    (I'm being silly...of course it can. The questions is can the suit be won.)
     
  23. uzver

    uzver Established Member PRO

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    It’s a two-edged sword, indeed.

    Like it or not but the awareness about this tool will increase amongst end users anyway, IMO. We just need to be ready to explain why we could care less about such valuation when our price is higher :xf.wink:
     
  24. Dave

    Dave Top Contributor VIP ★★★★★★★★★★

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    It might be because the higher end of the market has dried up and so this is bringing valuations down across the board. Afaik their algorithm is based on comparable sales through their own platform/Afternic.
     
  25. platey

    platey Top Contributor VIP

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    For godaddy valuations to mean anything godaddy should be able to stand by their valuation and be able to lend against their valuation and or be comfortable enoigh to buy a persons domain at what godaddy values it at
     

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