Where Do Some Sellers Get Their Valuations From?

[domaintrades]

We all know a domain is only worth what someone's willing to pay for it, but where do some people come up with asking prices in auctions?

I just saw one domain with a minimum price of $100, and a reserve of $500. The BIN price is an unbelievable $7,500!

I checked Estibot, and it appraised this domain at $0!

I'd never buy a domain without first getting at least a rough valuation, and I can't see anyone paying that sort of money for this one. So why would any seller ask ridiculous prices, unless of course he really believes that the domain is an investment that's likely to rise in value (I seriously doubt this one will).

 

[domaintrades]

It gets funnier...

Just saw one at starting/reserve price $20,000, and BIN at $50,000.

Appraised at $0, and a misspelt name at that!

Just finished, and guess what - no takers.

 

[Kuffy]

It's really difficult to try to guess a price. A misspelling could be a popular surname, or a nice brandable name. I'm starting to believe that the value is based on the dreams and the depth of the pocket of a potential buyer. If it costs $250,000 to pay consultants to find a new brandname - what value would you put on the .com?

 

[Kate]

I'd never buy a domain without first getting at least a rough valuation

Relying on an automated valuation isn't sensible. Like you said, a domain is only worth what someone's willing to pay for it, therefore the buyer is the one who is in position to appraise the domain.

 

[johnn]

Here is how you can get an accurate on the evaluation of your name. I used it and it works 100%

Multiply the number of Letters by 10
Add:
$500,000 for 1 letter name
$250,000 for 2 letter name
$50,000 for 3 letter name
$10 for 4 letter name
$5 for 5 letter name

If it contains any CHIP letter subtract $20 for each CHIP letter
Divide the total by 3
Multiple the total by 6.75

If you can't sell the name then multiply the total by 0 (zero)
If you get an offer then multiply the total by zero and add the offer to the total

If you use Estibot then multiply the amount by zero and start from the beginning.

 

[biggie]

We all know a domain is only worth what someone's willing to pay for it,

Hi

whenever i see someone start off their premise, question or reply, using that phrase.... i have to raise this question:


who is that "someone" in the "willing to pay for it" scenario and what are they "offering" in comparison to it's "worth or value"?

is it the first person who makes an offer, that determines it's worth?

and what are the parameters or metrics that make an offer worthy of considering or accepting, to replace that specific domain in your portfolio?

also, can a domain be worth more, than that "someone who is willing to pay" a certain amount?

just saying.... be careful in what you repeat or what you read or if you saw someone else say it in a video.

it's not a blanket statement you can wrap tightly around the appraisal, evaluation, statistical analysis of the domain, not to mention negotiating thru and within the sales process.


imo....

 

[domaintrades]

Hi

whenever i see someone start off their premise, question or reply, using that phrase.... i have to raise this question:


who is that "someone" in the "willing to pay for it" scenario and what are they "offering" in comparison to it's "worth or value"?

is it the first person who makes an offer, that determines it's worth?

and what are the parameters or metrics that make an offer worthy of considering or accepting, to replace that specific domain in your portfolio?

also, can a domain be worth more, than that "someone who is willing to pay" a certain amount?

just saying.... be careful in what you repeat or what you read or if you saw someone else say it in a video.

it's not a blanket statement you can wrap tightly around the appraisal, evaluation, statistical analysis of the domain, not to mention negotiating thru and within the sales process.


imo....

I think the principle applies to most things in life, whether it's a property, domain, vehicle and so on.

If a person is desperate enough to sell something, then he'll tend to accept a lower amount than that 'thing's' real worth. In which case the buyer has got himself a real bargain.

But, in hard, concrete terms, the bottom line is that a seller can put whatever price he likes on an item, but its worth is what he eventually gets for it.

In other words, its 'worth' (as far as the buyer is concerned') is what a buyer is prepared to pay for it.

 

[domaintrades]

Relying on an automated valuation isn't sensible. Like you said, a domain is only worth what someone's willing to pay for it, therefore the buyer is the one who is in position to appraise the domain.

True, but Estibot is probably the nearest thing to an accurate automated valuation we have at the moment, unless someone can point me to something better.

If Estibot appraises a domain at zero, is it really likely that the domain is going to sell for $20,000 upwards?

 

[biggie]

everybody... is not desperate to sell

so, in that scenario....a buyer must pay what the seller is asking, if they want the name.

imo....

 

[biggie]

True, but Estibot is probably the nearest thing to an accurate automated valuation we have at the moment, unless someone can point me to something better.

If Estibot appraises a domain at zero, is it really likely that the domain is going to sell for $20,000 upwards?

lol

if you believe that, then you have some serious unlearning to do.


imo...

 

[domaintrades]

lol

if you believe that, then you have some serious unlearning to do.


imo...

So, please enlighten me.

There's no point in saying that Estibot isn't the nearest thing to getting an accurate automated appraisal, then not saying which other company you know of which gives better results.

I'm not saying that Estibot is 100% accurate by any means, merely it's about the best on offer at this moment.

And on the second point, I'd love to know of any domains that Estibot valued at $0 that sold for $20,000 plus. But, again, I'm happy to be enlightened if you know of just one.

 

[domaintrades]

everybody... is not desperate to sell

so, in that scenario....a buyer must pay what the seller is asking, if they want the name.

imo....

Which is why I used the word 'if' in the sentence.

 

[Kuffy]

I've got my own infallible system.
If my eyes light up when I see the name, then it's worth $xxx
If I get a tingling in my stomach, then it's worth $x,xxx
If I break into a sweat as well, then the name is worth $xx,xxx
If my hand start to shake, then I put down the glass, and turn off the computer.

But to be sensible, there are so many factors involved in valuing a name because each name is a unique product. You really have to go by instinct, and the results of a bit of research, and be prepared to wait or be flexible.

 

[domaintrades]

Agreed, it isn't a perfect science.

I'm going to keep my eye on a domain that is appraised at $5, is currently at $55 in the bidding, and the BIN price is almost $590,000.

Couple of days to go, so I suppose it might get up there. We'll see.

 

[biggie]

So, please enlighten me.

There's no point in saying that Estibot isn't the nearest thing to getting an accurate automated appraisal, then not saying which other company you know of which gives better results.

I'm not saying that Estibot is 100% accurate by any means, merely it's about the best on offer at this moment.

And on the second point, I'd love to know of any domains that Estibot valued at $0 that sold for $20,000 plus. But, again, I'm happy to be enlightened if you know of just one.

Hi

automated appraisals cannot be accurate, simply because they are automated.

the bot is not in the business of buying and selling domains, so where do their results come from?

but if i were to use any tool that gave evaluations, it would probably be on a site that had experience in those areas.

like sedo, afternic or even gobaddy for instance

imo....

 

[Sanwal]

1- The famous gut. (Instinct)
2- The industry.
3- The buyer.
4- Related sales (Somewhat)
5- Gut again.

 

[4pm]

I'd love to know of any domains that Estibot valued at $0 that sold for $20,000 plus. But, again, I'm happy to be enlightened if you know of just one.

agricool.com
estibot: $15
sold: $40,000

 

[urlurl]

end users are not going to use an appraisal to determine the price they are willing to pay

the buyer's willingness to pay will depend on:

1. how much they like the name
2. their budget
3. how rare the name is (are there other cheaper alternatives)

 

[EZPZYO]

⇨Money has no value because when the client or consumer is hungry they just simply can't eat a DOLLAR BILL. Domainer's offer clients "tasty ingredients with edible domain platforms" because we know what we've cooked for them.

⇨Bots! How would a BOT know? What food tastes like? Exceptions: Keywords, Traffic's etc,.. even then please note the domain hasn't been developed yet!

✂ Yes, the world is full of "delusional" domainer's they just can't mix BS with sugar and call it a cupcake..

 

[domaintrades]

agricool.com
estibot: $15
sold: $40,000

Fair enough, still appraised at $15 in fact.

If the sold price was $40,000 then I can't argue with that.

 

[zurc.net]

Their ass?

 

[domaintrades]

Hi

automated appraisals cannot be accurate, simply because they are automated.

the bot is not in the business of buying and selling domains, so where do their results come from?

but if i were to use any tool that gave evaluations, it would probably be on a site that had experience in those areas.

like sedo, afternic or even gobaddy for instance

imo....

Hmm, all automated? Not sure about that. And all along I've been talking about automated appraisals, not those carried out by humans.

Sedo: Domain Appraisal by the experts: Fast, inexpensive, scientifically sound.

99 Eur

Afternic:

https://www.afternic.com/domain-name-appraisal#1

A review of your domain by one of the Afternic appraisal consultants.
Each domain name appraisal is reviewed and customized to help you make the best decision about your domain’s value.

https://www.namepros.com/threads/afternic-appraisals.997559/

As for GoDaddy I read mixed messages on their site.

1) It hasn't started up yet, but that could be an old blog post

2) It's being discontinued (from their site - We will be retiring the appraisal feature soon. This article is relevant only if you wish to view an appraisal you've had done in the past.)

And isn't that tool just for their customers, as part of an auction? If so it is limited to a select few, though I don't doubt it is/was, a good tool.

 

[urlurl]

Price Chart for a regular name...as time goes on

Luck sale------------$xxx,xxx
Very optimistic-----$xx,xxx
Nice return----------$x,xxx
Reseller--------------$xxx
Getting Desperate-$xx
Liquidating-----------$x
Expires---------------$0

 

[Kate]

There's no point in saying that Estibot isn't the nearest thing to getting an accurate automated appraisal, then not saying which other company you know of which gives better results.

There is no such thing as accurate appraisal, even a a human appraisal from a seasoned domainer will be a rough range, and not a precise figure. Still, domains can sell for surprisingly high (and unexpected) amounts. Each domain is different, so are the circumstances, like the motivation of the buyer and their financial means.

I'm not saying that Estibot is 100% accurate by any means, merely it's about the best on offer at this moment.

Or the least worst maybe. The problem is people who rely on the bot value, because they are incapable of appraising themselves. If you rely on this approach in order to buy domains for resale, this is the recipe to financial disaster.

And on the second point, I'd love to know of any domains that Estibot valued at $0 that sold for $20,000 plus. But, again, I'm happy to be enlightened if you know of just one.

To begin with, it cannot appraise brandables.
And the appraisals are always a best-case scenario, there is little liquidity for domain names. If the likelihood of a sale is near zero, then the appraisal is worthless anyway and cannot replace experience and gut feeling.

 

[Kuffy]

Lets face it - whatever you get will not be the absolute maximum that you could have got. To get that, you would need to contact every person in the world who could use a domain name, and those who don't know that they need a name. Be happy that you got $2,000 for that name you acquired for $1 plus reg fee.