question Why Do Buyers Pay More for Expired Domains Than Owner Listings?

[GotoBuyDomain]

Here's something interesting I've noticed in the domain market:

A 4L.COM domain that expires and goes to a registrar auction can sell for a much higher price than if the same domain is listed by the owner before it expires. The exact numbers can vary, but the gap is often huge.

For example:
A XXXX.COM domain can sell for $1,000 in a registrar auction after it expires, but only $200 if the owner lists it before expiration? Why are buyers willing to pay more for an expired domain than for one that's actively for sale?

 

[biggie]

Hi

it always depends on actual domain in question, venue, etc

also, regular listings don’t get as many eyes in same time frame that an expired domain in auction would.

listings, either have a fixed price or make offer, whereas an auction starts with a price

and there’s the visible aspect of competition in auctions for the same domain, which could start a bidding war.


imo…

 

[pb]

FOMO

 

[Kyle Tully]

Here's something interesting I've noticed in the domain market:

A 4L.COM domain that expires and goes to a registrar auction can sell for a much higher price than if the same domain is listed by the owner before it expires. The exact numbers can vary, but the gap is often huge.

For example:
A XXXX.COM domain can sell for $1,000 in a registrar auction after it expires, but only $200 if the owner lists it before expiration? Why are buyers willing to pay more for an expired domain than for one that's actively for sale?

A lot of it is simply exposure.

There are a LOT of eyeballs on the various expiry streams.

Much fewer are trawling marketplaces and private purchase opportunities.

 

[doidomnola]

Other than stupidity, it's because they want to feel like they "won" when in reality the only winner is the registrar.

 

[Igor Mironyuk]

I think it is the trust to expired domains and the power of the venue in the Web.

I've always wondered why ridiculous domains are sold on GoDaddy for $XXXX-XXXXX.

 

[boker]

I think it's not mostly about exposure, more about the feel about getting a great deal. If I decide to let go example.com, another domainer will underestimate it, if they know that I decided that I don't want to keep it. In the same time, if I let example.com to expire or even list it as a private person, most domainers will have the feeling that it could be a hidden treasure, that the previous owner was not a domainer and didn't know the value of it. It's like if a throw an old coin, most will not bother to check it out, thinking that it's worthless. But, if the same people will find the same coin, without knowing that I throw it, will double check it, to make sure that it's not valuable, thinking that somebody lost it and could it be valuable.