The domain contains 3 keywords because that's the town's official name, that's one of the differences between geo and other kinds of domains. As for the CA, yes, it's an extra, but again, that's the way people search for the town.
Most people search for cities and towns in search engines, they don't type 4 word URL's in the address bar hoping they get lucky... And if they do type the URL in the address bar, they would use the .GOV TLD, it's what's most widely used by Cities, Counties and States.
http://www.losaltoshills.ca.gov
No, no you dont get it, how many "words" in a city or state name does not dictate the value. LosAngelesCA is much better domain than BarstowCA, NewYorkCityNY is much better than lodiCA and so on, it is all about the market.
Also nobody is typing in anything, we are talking about SEO here.
This domains value is very low because of the low population and no commercial or industrial zones and geared towards one market who would have interest.
Yes expensive cities do far better than poor cities IMO. If this was a poor city of the same size worth almost $0. But only a factor in selling to an end user in that city.
Low to mid $xxx.
His PR is 15, and losaltoshillsca.com is nowhere on the map.
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