advice Strategy for Pricing Domain that Previously sold at a Certain Level

[redgoblin]

Hi Guys,

Just wanted some advice on your strategies on pricing a domain that sold at a previous level. Would you always set the minimum price to the last sold price or ignore that and try to value it based on what you think it's worth today (In case the last buyer way overpaid)? I guess my question is just HOW relevant is the previous sale of the domain? Sorry if this sounds like an obvious question, but i've picked up a domain that sold for $10,000 dollars previously and I'm unsure how I should approach this sale (cost to me was $300). I'm unsure if the previous buyer overpaid and therefore I should price lower, or if that should be the floor regardless.

Thanks!

 

[Kyle Tully]

Previous sale price has no bearing on what I price at. But would virtually never be less than a previous sale just because most people underprice and good names and getting harder to find.

 

[redgoblin]

Previous sale price has no bearing on what I price at. But would virtually never be less than a previous sale just because most people underprice and good names and getting harder to find.

Thanks Kyle - makes sense. Looking forward to others thoughts and opinions too.

 

[biggie]

Hi

it all depends on the actual domain and when the last sale took place.
does it get traffic and/or receive any offers/inquires?

the name could have been a "trend or fad" at that time and now that "that time" has passed.... then value would be less.

also depends on what the buyer did with the name. ie; was it parked or developed?

imo...

 

[redgoblin]

Hi

it all depends on the actual domain and when the last sale took place.
does it get traffic and/or receive any offers/inquires?

the name could have been a "trend or fad" at that time and now that "that time" has passed.... then value would be less.

also depends on what the buyer did with the name. ie; was it parked or developed?

imo...

Thanks Biggie for your comments. As far as I can tell, the domain was never developed (checked on Wayback but unsure how else to check), so it looks like it was just a case of the buyer saw some purpose for it and probably never followed through. I don't think it's a trend thing either. Obviously I'm hoping i can get a sell near the previous sale price but also given I'm pretty new to this, I don't mind a sale at even half that price to re-invest into more domains.

Just wondered what people generally did in such situations and if they ended up selling more than the previous price or sometimes it went cheaper.

 

[Bob Hawkes]

Some good points by @biggie in his post just above. Especially with respect to pricing and trends that may be past.

I would just view a prior sale price as one, of many, points to take into consideration, but would not place much emphasis on it. Some names go for more than fair market value, many sell for less, which was the case in a sale 5 or 10 years previous says more about the seller/agent probably.

If you are going to place any weight on a previous sales price, be sure and ask the question whether this name will have increased or decreased in value since the time of the prior sale.

Thanks for starting this discussion with an interesting question, @redgoblin! And welcome to NamePros!

-Bob

 

[okaydomains]

I'd ignore it, but its so hard to say without knowing the name.

Does it seem like a name that would be valuable to several businesses? Or is it a name that might have very specific appeal to one certain person or business?

If the former its more relevant.

 

[GNP]

Another point that hasn't been mentioned is how long ago was the prior sale?
Are we talking a year (unlikely I know), a few years, 5+ years, or 10+ years ago.

 

[BaileyUK]

I would completely disregard any previous selling price, unless it was a popular generic and remained so. Sure it's a bit of historic information but that's about all. The domain would have to retain many suitors that are still looking for similar for me to think about upping the price.

I would recommend taking a fresh look at the domain. try to get that previous sales figure out of your head. The previous seller may have been a head-headed negotiator with a brilliant sales pitch and Not so easy to repeat.

I think most domainers would have the ability to see any domain in a new/current setting. So much gets side-lined over time and new emphasis comes to the fore. I would be impossible to operate effectively without these considerations.

Not that this applies to your domain. But how often do you see domains looking for high prices that are way-past their selling-date. No longer popular prefixes, Sellers holding out without realising time has passed by on their domain. It happens a lot.

 

[redgoblin]

Thanks all. The domain in question is:

BlockTags.com

Previously sold on Sedo in 2018 for $10,000

How much would you guys price this?

 

[okaydomains]

Its an alright domain but I'm shocked it sold for that much. I wouldn't put much stock into that previous sale.

I'd probably price it at $2500.