Inconsistency in Paid Appraisals

[Raider]

Many times when a serious offer comes along for one of my top domains, I will have it appraised, rather than risk selling it for less than the fair market value..

I used a couple of appraisal services for the same domain, and the numbers are all over the place, adding more confusion to the appraisal itself......For example; this last year I received many offers on a domain in the 20K-35K range from resellers and this is what a couple appraisals came in at;

Godaddy appraisal:
$5,840.00 - $15,180.00

AppraiseDomains.com
CMV: $20,000.00
PMV: $132,500.00
SSV: $51,000.00

======================

Here's another for a domain that received a 25K bid but failed to meet reserve at Moniker:

Godaddy: $10,000 - $39,000

Sedo: $10,000

AppraiseDomains.com: 52K
CMV: $22,000.00
PMV: $52,000.00


Question; What appraisal service best reflects the Fair Market Value for a domain?

 

[dcristo]

What do you mean fair market value? It's worth what someone is willing to pay. Paid appraisals are a waste of money IMO.

 

[Biggie]

none...imo


domain appraisal is always subjective to who is giving it, and unless it's appraised against others domains in the same category then it's bound to be huge variances in value.


I think the best way to appraise a domain is by examining sales prices of similar domains, and the demand for them from other buyers.

The only appraisal service I would ever used would be one who is reconized/certified by IRS, to assertain values for Intellectual Property.

it's no exact science

imo...

 

[Raider]

domain appraisal is always subjective to who is giving it, and unless it's appraised against others domains in the same category then it's bound to be huge variances in value.

I think the best way to appraise a domain is by examining sales prices of similar domains, and the demand for them from other buyers.

Moniker has a search where you can lookup domains that are similar to yours that sold at auction, but it was very difficult to find one to compare too... But I would agree this is one good way to gauge the value.

Can offers from resellers be used to evaluate a domains worth?, Lets say you consistently received offers in the 20K-25k range for xyz.com, how undervalued would you say that is compared to what you would get at a domain auction?

 

[Theo]

Sedo always "lowballs". I would not even call their appraisal conservative; it's simply inaccurate.

 

[Raider]

Sedo always "lowballs". I would not even call their appraisal conservative; it's simply inaccurate.

Your right, I'm also hesitant to purchase one from a domain broker that has a vested interest in lowballing it.

 

[Biggie]

Your right, I'm also hesitant to purchase one from a domain broker that has a vested interest in lowballing it.

which is a very good reason for not "buying" appraisals from those in the domain buying and selling business.

 

[PapaStiz]

I have said this time and time again..

If you paid me, and I give you a low ball appraisal, it is a slap in your face. No one pays to get a slap in the face.

So, since you are paying me (and I want you to come back to pay for more), I am going to give you a high or unrealistic apprasial. Hell, I could just even make up a number. The point is, I can register a domain RIGHT NOW, send it to apprasial, and guarantee that it would be at least XXXX.

That does not mean anyone is going to pay XXXX, they just say this to make you feel good and to keep you coming back. Is there a chance someone would come by tomorrow and pay me X,XXX? Yes!! For sure. But it is unrealistic for 99.9% of those names.

When you pay a domain company to give you an apprasial, you are having the fox guard the chicken coop, or however that saying goes.

Need another example...

If I post a domain in the fixed price section for 10K because GD apprasial service says it is worth that much, how many people would buy *based* on the apprasial.

If you would not buy based on one, I would not consider paying to get one, or selling a domain based on one.

 

[Seraphim]

Sedo always "lowballs". I would not even call their appraisal conservative; it's simply inaccurate.

You should try putting a name up for sale at their auction, I think their reserve system is something along the lines of "spin the wheel". I can't stand Sedo, they're idiots!

 

[dnalias]

anybody ever try domainmart.com?

i believe he is a member on this board. i don't know much about his service, but based on the research he does, use of statistical factors in addition to the human element it looks legit.

i do agree with most of the above.

 

[katherine]

Clearly appraisals are subjective and there is wide range in possible value. Certain providers such as godaddy can downright be discarded as crap though
Probably one of the most accurate way of appraising is to look at comparable sales.
When I pitch a name to a potential buyer I try to include figures for recent similar sales and I believe they are more receptive as the sales reflect actual market trends... appraisals are just theoretical estimates.

 

[stuff]

Many times when a serious offer comes along for one of my top domains, I will have it appraised, rather than risk selling it for less than the fair market value..

I used a couple of appraisal services for the same domain, and the numbers are all over the place, adding more confusion to the appraisal itself......For example; this last year I received many offers on a domain in the 20K-35K range from resellers and this is what a couple appraisals came in at;

Godaddy appraisal:
$5,840.00 - $15,180.00

AppraiseDomains.com
CMV: $20,000.00
PMV: $132,500.00
SSV: $51,000.00

======================

Here's another for a domain that received a 25K bid but failed to meet reserve at Moniker:

Godaddy: $10,000 - $39,000

Sedo: $10,000

AppraiseDomains.com: 52K
CMV: $22,000.00
PMV: $52,000.00


Question; What appraisal service best reflects the Fair Market Value for a domain?

well say the name I will appraise it. give you real market value. Make you a reality check also - it will include suggestions like, don`t give up your day job yet.
Also if you want appraisal for the tombraider domain, I can tell you that its value most be in the 16-24 months ppc revenue, probably 18 months. Heavy tm issues with this one. Also not based on some kind shitty parking company stats like bodis.

This all for FREE. I like your boyfriend (Focus) that much.

 

[Seraphim]

well say the name I will appraise it. give you real market value. Make you a reality check also - it will include suggestions like, don`t give up your day job yet.
Also if you want appraisal for the tombraider domain, I can tell you that its value most be in the 16-24 months ppc revenue, probably 18 months. Heavy tm issues with this one. Also not based on some kind shitty parking company stats like bodis.

This all for FREE. I like your boyfriend (Focus) that much.

Is it just me, or are an increasingly growing number of threads here becoming Sumo wrestling matches?

 

[Raider]

Please forgive Stuff, he is our DNF "Idiot", a Child who has been rejected by society.....He just cant help himself :yes:

 

[Seraphim]

Please forgive Stuff, he is our DNF "Idiot", a Child who has been rejected by society.....He just cant help himself :yes:

Ok, I thought it was just a girls have cooties phase.

 

[Beachie]

Why would you give someone else the job of valuing your business and pay them for the privilege? It's worth whatever you're capable of selling it for. Making decisions based on appraisals is double trouble - you either risk selling it for too little because of a low appraisal, or you don't don't sell it for the best offer you'll ever get because of a bloated appraisal. Until you get the confidence to trust your own judgement you're not going to do well.

 

[Raider]

Why would you give someone else the job of valuing your business and pay them for the privilege? It's worth whatever you're capable of selling it for. Making decisions based on appraisals is double trouble - you either risk selling it for too little because of a low appraisal, or you don't don't sell it for the best offer you'll ever get because of a bloated appraisal. Until you get the confidence to trust your own judgement you're not going to do well.

I agree with much of what you say, and have sold many domains without regret for decent amounts, but like many others, I value certain domains more than others, and like having that 2nd or 3rd opinion before quoting the asking price.

 

[stuff]

Please forgive Stuff, he is our DNF "Idiot", a Child who has been rejected by society.....He just cant help himself :yes:

now you are using the only word I know, you stole it from me

I agree with much of what you say, and have sold many domains without regret for decent amounts, but like many others, I value certain domains more than others, and like having that 2nd or 3rd opinion before quoting the asking price.

wow, you really have sold domains, thats good for you. and decent amounts. Wow!

 

[Raider]

wow, you really have sold domains, thats good for you. and decent amounts. Wow!

Is there an echo in the room?

If you cant contribute to the topic of discussion... LEAVE!

 

[BidNo]

Raider, I agree with the above. Don't want to thread spam but this was motivating factor for site in my sig; I trust you are familiar? PM if I can answer questions.