Psychology Behind Appraisals

Hello all...

For the past few months, I have been appraising various domain names in the appraisal section of the forum.
Here are some of the points that I think are important enough for anyone in the domaining business and getting an appraisal to understand:

An appraisal on a domain name is only an estimate of what price range you could ask for, in case of those domain names. Here are some factors that are very clear:

1) The sound, pronunciation and commercial usage - These are important factors to look at when appraising a domain name
2) End users - What kind of end users are there for that name
3) Keywords - Keywords that you use are important and helps in putting a price on a name.
4) Other factors like similar sales, search results, length, etc.

What we tend to miss out on is the person who is selling them. Here is how the value gets affected :

1) A person who hasn't sold a single name in the past 2 months while he used to sell 2/3 names(xxx range each) may be willing to sell a $2,000 name in mid to high xxx due to desperation.
2) Cash Flow - If you don't have a good cash flow, you might want to pound on the first offer that arrives from an end user.
3) Mindset - If you are taking it as a hobby, you might want to churn out any profit you could. But when you see it as a business, that's when you make efforts to invest in learning and making the most out of it.
4) Negotiation skills - Another important factor is the negotiation skill. If you are a tough negotiator, you can always end up getting better deals.

There might be several factors that are very evident in an appraisal but there are several others which only you can determine, owning that domain name.

Thoughts are welcome!

 

Hi

an appraisal, is only the opinion of those giving the appraisal.

an appraisal, does not limit the amount you can ask for your domain.

value and price, are not always the same or equal
a domain can sell (price) for more or less than it's actually worth (value)

therefore, a domain owned by a desperate seller, does not decrease in value according to their financial status.

the value can remain the same, and only the price may change.

imo….

 

An "appraisal" is a nice way to insult a domains owner! lol

Basically if the "valuator" is your friend, you will get a High appraisal, if he don't like you he will give a very low appraisal... At the end, appraisals are BS!

 

Valid point! I agree.
The price may significantly vary according to the buyer and seller though!

 

I think it's not BS. Rather a good way to get a rough idea abt what a domain could be worth.
A range could help the owner decide the actual price!

 

Any more thoughts on this?

 

Appraisals may indicate what a salesperson could sell it for.... Just because you have had high appraisals it doesn't give any indication on how to locate the decision maker of a business and how to approach and negotiate. The actual skill with any domain sale is how you ask for an offer and how you word a set price and negotiate. There has been plenty of give aways domains sold cheap because owner didn't have skills and vice versa. An appraiser should know where he would look to find an end user for the name in question.

 

Good point. Exactly!