Why so expensive??

[tmwoods84]

So, I've been looking at arizonalandforsale.com, but the owner wants 10k for it. Maybe I'm just too much of a rookie but I can't figure out what on earth makes Him think he can ask so much for it! Currently it's being used for adsense and it has a PR of 0.. Am I missing something??
Thanks in advance!

 

[tavin]

according to google keyword tool, over 18 dollars a day on ads is spent for the exact keywords "Arizona land for sale"

 

[MissFlora]

You are right. His pricing is definitely for an enduser. And enduser such as a commercial land real estate can be very rich...so there. And you never know, the agent might really pay that price :O

Flora.

 

[Kate]

It's interesting that the name is taken in quite a few extensions.
I'm not sure about the value for a name like that, but I presume the owner is hoping you're a loaded end user :gl:
Anyway the price quoted is a starting point and you can counter-offer.

Many domain owners are unrealistic when it comes to pricing but the other side of the coin is, you won't receive more than you ask. By setting a low starting price you undercut yourself.

 

[wwwweb]

It is a geo product domain of a state that has a lot of excess inventory of land, and housing units. There are some very nice $xx,xxx,xxx houses in Arizona. The owner has the benefit of simply paying $70 to renew it for a decade, and attempt to get close to his asking price. In the event he sells it to you for lets say for $100, basically for a tank of gas, given all extensions are taken, and domain is descriptive, the owner is well within his right of holding out for an end user. Get used to it more and more domainers are realizing solid domains are impossible to replace, and he has more to gain than lose, by selling cheap. I don't blame him do you... he can probably make your offer amount in adsense in a year. I respect you are trying to get the domain you want for the best possible price, $10k is excessive, I am sure they have some room to negotiate priced into the domain.

 

[johname]

its common in AZ to buy a large piece of land and then break it up into lots and sell them to snow birds that go to AZ in the winter time. Seller know a person can afford it, just needs to bump in the person that wants that name. I really dont have much problem with the price

 

[bmugford]

This is a very nice domain with a lot of end user potential. The term makes a lot of sense with Arizona, and it is taken in every major extension and contained in several other domains.

While $10K might seem excessive, there are not an endless supply of domains like this. To the right buyer it might be worth it.

Brad

 

[tmwoods84]

Thanks!

Thank you everyone for your insights! I hope my statements didn't come across as negative in any way towards capitalism. I'm just trying to understand where the value is.
Thanks!

 

[fm1234]

People ask silly prices for domains across the board, Tom. It's just part of the nature of this business.


Frank

 

[vc]

This price is not silly at all. In fact an agent makes that in 1 or 2 sale and there are thousands of them.

 

[richrf]

The biggest issue here is that the owner has made no attempt to prove that the name can draw in prospective land and real estate buyers. It is simply a parked domain of dubious value. Typing in the keywords, you can see there is quite a bit of competition. I would estimate, based upon the Quantcast metrics, that the site has the potential to get about 10,000 visitors a month. So, an investment of $10,000 for the domain and possible $10,000 in developing the site can bring a handsome reward to a genuine end-user who sell land in Arizona. But, this assumes that the site can get good ranking on those keywords. Why the owner doesn't do simple development to prove worth and value is beyond me.

 

[Domainace]

Good luck with the name, Tom. Hope you haggled him down a bit, but either way you'll make your money back - especially if you develop it to get a decent SE ranking. I hear the AZ gov't is selling a lot of land these days.

Edit- Some nice looking properties there. Esp. off the grid.

 

[tech4]

Sometimes setting a high price has several reasons.

1-Could be owner doesn't want to be bothered with selling the name at all, so no email junks-Not for sale
2- Could be owner doesn't want low ball offers at all -setting the ceiling high.
3-Owner thinks it worth that much
4-Owner overpriced.

I set prices really high so no lowball offers, sometime, not for sale.
There's plenty of reasons.

 

[SiberForum]

I suppose that you can also use Hyphens in order to reg domain similar to the one you want to buy.
Hope it will help.

 

[tmwoods84]

@richrf The 10k in development could be put into any domain name. So, correct me if I'm wrong, but you seem to be inferring that having your keywords in your domain is important enough to pay another 10k for. Which brings me to another question: how important is it really to have your keywords in your domain name?

 

[glaxxon]

@richrf The 10k in development could be put into any domain name. So, correct me if I'm wrong, but you seem to be inferring that having your keywords in your domain is important enough to pay another 10k for. Which brings me to another question: how important is it really to have your keywords in your domain name?

It is pretty important to have keywords in your domain. It means it is easier to rank the site.
Otherwise you can still rank for keywords, but that'll imply higher SEO and marketing costs.

A generic domain, especially .com's, have the added advantage of getting good type-in traffic, thereby increasing potential customers.

 

[Kate]

@richrf The 10k in development could be put into any domain name.

Very true. Most people will just reg whatever is available instead.
One thing to ponder though, sometimes investing in the right domain means you will spend less on advertising. For instance the name is meaningful and memorable. Plus there is the brand authority aspect. If you have a great domain you have more credibility.

I'm not saying the name is worth or isn't worth 10K, but you have to consider how profitable the niche is. If you can recoup the cost with 1 or 2 transactions, it makes sense from a business point of view.

 

[richrf]

Very true. Most people will just reg whatever is available instead.
One thing to ponder though, sometimes investing in the right domain means you will spend less on advertising. For instance the name is meaningful and memorable. Plus there is the brand authority aspect. If you have a great domain you have more credibility.

I'm not saying the name is worth or isn't worth 10K, but you have to consider how profitable the niche is. If you can recoup the cost with 1 or 2 transactions, it makes sense from a business point of view.

I agree. The current domain owner should put some effort into proving that the site can rank high for keywords. This could be accomplished with as little as a WordPress blog. With traffic verified (e.g. via Quantcast or Analytics), it is easy to create a business case for a realtor in Arizona.

Rich

 

[fm1234]

posted by vc:

This price is not silly at all. In fact an agent makes that in 1 or 2 sale and there are thousands of them.

This broad, vague statement has no relation whatsoever to the domain name in question. "Some real estate agents are successful" does not equal "real estate domain names are valuable."

Let's look at some actual metrics:

.com

Passes radio test

8,670 exact match searches per month on Google - nice volume

32,800 exact match results -- great KEI

AdWords CPC $1.73 with ~$600 per month estimated cost to remain at top position ad for this phrase - also nice

AdWords/search metrics about average for related/similar terms

Top search results and AdWords ads for the phrase arizona land for sale (broad match) totally dominated by similar domains - bad sign as organic competition is stiff and not likely to be easily overcome by SEO score conveyed by an exact match domain

So, it has a lot going for it and a little against it. How much is it worth? If it were mine, based on my own experience with selling domains to end users, I'd be pitching AZ realtors and relo companies that send traffic to AZ realtors and asking $3,500-$4,000 , with a floor acceptance level of a couple thousand dollars.

I do think that it's a nice enough domain, well enough supported by market numbers that I would not throw it off on a forum or eBay; any price under $2,000 is low enough to warrant me spending some money on development and then trying again to sell it -- but unless it was bringing in serious traffic/income it still wouldn't come close to ten thousand dollars.


Frank

 

[DaddyHalbucks]

Real estate is a high ticket item. Real estate commissions can be be big too.