How Appraisal Work?

[Johnn]

I see many people are begging for appraisal on the names they own believing that they will sell the name at the appraisal price.

I have some good examples on how appraisal work.

1. I bought some names in the high $xxx and listed here for $99 and $88 and no one want to buy them (don't look as the threads have been closed. I just want to test the water at my expenses).

2. There are 2 names that I bought from the forum for $5 and $10 - Just sold them one for $500 and one for $850 - this week.

Stop believing in appraisal. This business is a funny business as the price of a name is what a buyer willing to pay.

 

[Anthony Ng]

... the price of a name is what a buyer willing to pay.

How about the seller? And I would say that price is actually determined by demand and supply (ECON 101).

 

[Johnn]

The demand and supply rule does not apply here.

There is only one name - When you want the name, you want the name - There is NO alternative.

 

[Anthony Ng]

There is only one name - When you want the name, you want the name - There is NO alternative.

Interesting. My understanding is, while domain names are different from factory produced commodities like cooking oil or swimming pants, they are not exactly unique as in Picasso's Guernica, for instance. There is substitutability, which affects uniqueness and therefore pricing. Moreover, it's hard to rule out demand and supply in just any economy: just think of the owner/seller (supply) of sex.com on the one hand, and the buyer (demand) of a certain 3-character or 4-letter .com on the other.

 

[Biggie]

Congrats on the flips Johnn


i don't put much confidence in appraisals either, but in my world..."buyers make offers, sellers set prices".

when the two meet, then a deal can be made.

 

[Johnn]

You have to make a sale pitch: The name that they pick is an excellent name and offer them some "low value names" and let them pick.
99% of the time they will stick with the first one and you have more chance to make a sale.

One mistake many domainers made is "do not rush" the end-user. It normally take days or even weeks before they will decide and make a decision.

 

[Mark Talbot]

But yet everyone wants to know what their catalog is worth.

Domains aint worth squat,... untill you sell them to someone.

If you want to flip,..put it up for sale and start accepting offers.

If you think it is worth more,.develop it, or put it up for sale and turn down the flippers.

If you are not flipping, it could take years.

It is that easy!!