question Should I Increase the Price After Buyer Developed the Site?

[TBR07]

Hi everyone,

I’m in a tricky situation and need your advice. I sold a domain through a Lease-To-Own (LTO) agreement (60 months), and the buyer already developed a website on it. However, the agreement was canceled after three months.

Now, I’m considering whether to:

• Increase the price if they want to renegotiate, given the added value of the developed site.
• Or keep the original terms.

What would you do in this case? Any insights or experiences to share?

Thanks in advance!

 

[Future Sensors]

This is difficult to assess without mentioning the specific domain name and the price you asked for it.

 

[Future Sensors]

In general, I would recommend setting the number of LTO (Lease-to-Own) terms much lower. This increases the financial commitment for the buyer, making them less likely to cancel easily. As for the cancelled LTO agreement in your case, there could be various reasons behind it. It might be worthwhile to investigate the cause.

 

[Bravo Mod Team]

There's a good chance that if they couldn't make their payments, then they also aren't going to be able to afford a higher price.

 

[ARCCLOUD]

There's a good chance that if they couldn't make their payments, then they also aren't going to be able to afford a higher price.

This.

Same thing happen to me. Guy made 6 payments, the website looked decent, but then default. Relisted for the amount he owed ONLY but no buyers.

 

[Future Sensors]

The situation can vary greatly. For instance, I once had an LTO buyer who was late with their installment payments. After several unsuccessful payment reminders from DAN.COM, I requested to cancel the agreement. I then adjusted the price to BIN-only, and increased it slightly. Within a few days, the same buyer purchased the domain.

This cancellation was initiated by me. If a cancellation occurs on the buyer's end, it's wise to investigate the reason behind it.

In the particular case described by @TBR07, the buyer was already in the process of developing a website, which likely involved significant additional costs; likely more than the price of the LTO terms already paid.

 

[TBR07]

Thank you for your response !

In general, I would recommend setting the number of LTO (Lease-to-Own) terms much lower. This increases the financial commitment for the buyer, making them less likely to cancel easily. As for the cancelled LTO agreement in your case, there could be various reasons behind it. It might be worthwhile to investigate the cause.

Yes, it was a beginner's mistake to set the LTO at 60 months!

There's a good chance that if they couldn't make their payments, then they also aren't going to be able to afford a higher price.

I don't think so! I believe they simply forgot to renew the payment. It's a well-established company, founded in 2006, with around 50 employees. Additionally, the LTO (Lease to Own) was only $150.

Now, GoDaddy is offering me the chance to get my domain back! I think I'll slightly increase the price and set the LTO duration to 12~18 months.

 

[pb]

I have a rule that when someone fails to pay the instalment, they can resume the deal (within a reasonable timefreame) but I add one more instalment. So if they paid 10 out or 20 and then forget payment and the deal lapses, I will typically set up a new transaction with 11 instalments x the same amount. It doesn't matter to me if they built a website or used an e-mail, or didn't do anything - increasing the price based on this would be unfair IMO.

BTW that's of course only if they contact me about it. Other than that it's still my domain and I can list it for 10x the amount if I want, and if someone else buys it then that's on them. But if I still have the domain and they contact me within 1-2 months about resuming the LTO, then I will do as above.

BTW2 I had a case where a guy stopped paying and I relisted the domain for sale over one year later, and I got an angry e-mail from them saying that I'm unfair and that I'm denying them the right to eventually buy that domain, lol. But I don't let odd cases influence my personal rules.

 

[RegDN]

Sharing a recent case of mine
The buyer purchased a domain name through Godadday for about 4k$.
The installment is 52 installments, which is only about 70$ per month.
Due to Afternic's collection issues, I had to use wire transfer.
But had to be charged 26$ each time, so only about 49$ each time.
Recently the potential buyer dropped the payment
I mainly contacted the potential buyer and lowered the asking price by 50% to sell

If you increase the price, sometimes it may not sell
It depends on the situation