guide How does the bidding work for an expired domain?

[Jyo]

Hi, I was going through a list of domains on expired domains site and I landed on GoDaddy for one of the domains I liked. I'm not sure how the bidding works. For eg: If I want to bid on 'some domain, what will be the price of the domain if one wins the bidding? and the valuation/estimated value is different from the price, right?
P.S. By the question itself, you must've understood that I'm a newbie. Please be kind in your replies. Thanks!

 

[mdent]

Well, let's say you place a proxy/max bid of $200. There are a couple more bidders but the auction ends at only $100. You won and you owe $100 in exchange for the domain.

GoDaddy has a proprietary domain valuation system that is based on their past sales data and god knows what else, that metric is largely meaningless and isn't related to the price of the domain.

 

[BaileyUK]

As mdent as stated, Ignore that Godaddy valuation It is irrelevant and has no bearing on the auction. If your buying for potential future sale, I think you should step back. You read like someone who has a lot to learn.

If it's a one-off purchase, decide your maximum affordable price and place your bid. If it's a good domain don't be surprised if you don't win the domain. If it's mediocre you might get it for a lot lower than your maximum bid amount. The auction only takes incremental steps to your maximum amount if there are other bidders. Be ready to pay straight away if you win