how binding is a SEDO offer?

websitedeveloper · Oct 1, 2004

Three days ago I replied to an offer at SEDO and quoted a selling price substantially lower than an offer I received today for the same domain.

I tried to cancel the negotiations with the first party from my SEDO account so I could accept the higher offer, but SEDO states my counter offer is still binding for 4 more days.

If the first SEDO buyer accepts my offer, do you think I have to sell the domain to this party for less than a later offer?

Mr Webname · Oct 1, 2004

clicknow.to said:
Three days ago I replied to an offer at SEDO and quoted a selling price substantially lower than an offer I received today for the same domain.

Are you saying that you accepted an offer, or you informed the enquirer of a price you would accept, or something else?

mike031 · Oct 1, 2004

once you reply back with an offer it is binding for 7 days, you cannot back out... if the other party accepts your counter-offer you got your self a done deal

k:

websitedeveloper · Oct 1, 2004

Thanks for the replies.

Mr Webname: Yes I informed one enquirer of the price I would accept then was offered more by some one else (the domain is listed at SEDO with "Make Offer")

mike031: Yes I agree if the enquirer accepts my counter offer it's a done deal, even though some one else later offered $5K more than what I quoted to the first enquirer.

Nexus · Oct 1, 2004

clicknow.to said:
mike031: Yes I agree if the enquirer accepts my counter offer it's a done deal, even though some one else later offered $5K more than what I quoted to the first enquirer.

If it helps, you can pretend the second offer was just someone messing with you.

May help sooth the mind.

Best,
~ Nexus

Domagon · Oct 1, 2004

In my personal view, a Sedo offer isn't that binding.

With that said, backing out of a negotiation that far along doesn't help one's reputation ... so it comes down to how much money you're talking about ... a few hundred dollars, a few thousand dollars, or much more? If the answer is much more, then backing out may be risk worth taking - what is Sedo going to do ... file a lawsuit? And for what damges exactly? -perhaps their commission for the domain to the first buyer, but 10% of even $10K isn't exactly a lot ... Sedo filing suit over $1K ... they may, but then that's where you settle for like $500 or whatever ... so it's still a win in a matter of speaking for you ... but I'm really digressing here ... thinking out loud LOL!

In a nutshell, you have to weigh the amount of money you could potentially earn from backing out verses the amount of money you will earn accepting the current offer - if the difference is significant, then backing out may be a worthwhile business move, despite the tradeoffs involved ... ultimately this is a judgement call involving not only basic economics, but also ethics ... not an easy one I'm afraid.

Good luck

Ron

missedcall · Oct 1, 2004

My opinion ...DO NOT BACK OFF

Just last week afternic informed me that that they have closed an account of a seller didn't responded to the escrow of a domain I bought.
They also stated that I "could fill a complain against this user for further actions" smt like this, don't remember exactly the words ....

now don't know what does this means but didn't want more trouble for a an $xxx sale that didn't went on. BUT the fact is that Afternic removed his account which was an account with many listings.

DON't know what happens in your case but think twise before backing off for $5k.

Maybe valuenames is right saying "a Sedo offer isn't that binding" cause you may join sedo without putting your credit card there, start listing domains that u don't own ( i joined last week and 2 domains I wanted to list was already Listed by somewhere else)...
this is a a bad practise from sedo in my opinion. Also now understand that the subscription fee of Afternic is not just for collecting $$$.

Steen · Oct 2, 2004

Can you back out? yes for sure
Should you? that's a case by case decision based on how you feel

websitedeveloper · Oct 2, 2004

Thanks for all the replies.

SEDO responded to an email asking whether I could back out and it was very vague. One sentence inferred I could then another said the offer is legally binding for seven days.

I really hope the offer to the first enquirer is not accepted or they make a counter offer so I can cancel that negotiation and accept the higher offer because I feel obliged to follow through, if the first enquirer accepts the offer.

Nexus · Oct 2, 2004

missedcall said:
My opinion ...DO NOT BACK OFF
[--SNIP--]this is a a bad practise from sedo in my opinion. Also now understand that the subscription fee of Afternic is not just for collecting $$$.

Agreed. My opinion is "do not reneg". I'm not going to mince words by stating the obvious pluses and minuses. Lots of rationalization can be made for anything we really want to do. I recieved a $350 bid on a name at Afternic, and later recieved a $500 bid from Sedo. I let the Afternic bid go through, and it was done. In the end people can do whatever they like. Comments like "it depends on your conscience" or "it depends on how you feel" are neither here nor there in my opinion, as they are stating the obvious.

The truest statement is, "It depends on WHO YOU ARE."

If you go into agreements, you should honor them. That is my feeling on it.

~ Nexus

Anthony Ng · Oct 2, 2004

Ethics or morals aside, backing off an offer will have serious consequences, esp. when it's not a one-off sale (i.e. you will still buy or sell a lot in the industry). I was once a "victim" of such a broken promise when a guy backed off from his accepting my offer on his apartment. But that was different, as he was not a speculator and probably will only be buying and selling a couple of times throughout his lifetime. Of course, if you are to stay in the industry, you don't want to build a bad reputation.

websitedeveloper · Oct 2, 2004

Yes I agree; if the person accepts my counter offer I have to follow through, but my finger's are crossed they don't accept because an extra $5K is a considerable amount of money for me and it would make for a beautiful profit on this domain

Steen · Oct 2, 2004

clicknow.to said:
Yes I agree; if the person accepts my counter offer I have to follow through, but my finger's are crossed they don't accept because an extra $5K is a considerable amount of money for me and it would make for a beautiful profit on this domain

Congrats, sounds Juicy.

Prosperous · Oct 2, 2004

missedcall said:
i joined last week and 2 domains I wanted to list was already Listed by somewhere else.

That's probably a previous owner of those names that forgot to remove them there after selling them (somewhere else) or after letting them expire. Happens quite a bit.
Write Sedo and they'll remove them for you, after checking the current WHOIS etc. At least, that's my experience.

Cheers,
Rob