Why so high (3 character domains)?

[draggar]

Is there a reason why 3 character domains are so high in price? I'm not going by a personal appraisal but I use 3character.com as a guide considering they go by recent sales.

For example, there's a LLL domain I would love to get, according to that site the .biz should be worth about $35 but the one I want is on sedo for $300 Euros ($385 US with current exchange rates). Yes, I'm sure the domain is considered a premium (7.5 million Google results and I'm sure with a very high search volume) but would this justify over 10X the "average" sale price?

Not just with this one, quite often I see LLL domains for sale that are well over 5X the average sale price, some 10X-20X the average sale price. I do undetstnad that LLL and NNN domains are a great investment for the long term but it seems like people are trying to get tomorrow's prices today.

Is 3character.com a legit site to base a "guess" on the value of these domains or do many sales go unnoticed by them (thus making the figures they post unreliable?).

 

[DN BROKER]

pricing is all based on what he or she wants to sell, anyone can launch a website and list a serious of numbers and claim a 3 character is worth this much, at end of the day the domain is worth what the buyer is willing to pay.

 

[draggar]

True, but that site claims they use recent sales to come up with the values (which should be the best determination for average / general values). They've also been around a long time with their price guide.

True, anyone can ask whatever they want for domains.

 

[mvl]

...
over 10X the "average" sale price?
...
well over 5X the average sale price, some 10X-20X the average sale price.
...

The prices on that site are not average but a kind of minimum prices:

Current Observed Minimum Wholesale Price (regardless of letter combo)

 

[draggar]

Why do I always miss those big bold letters?

But:

The quality of the letter composition can play a significant role in determining 3-letter valuations. General concensus states that the letters A, B, C, D, E, F, G, H, I, L, M, N, O, P, R, S, T are considered premium letters. Other lesser high quality letters include: J, K, U, V, W. Lower quality letters include: Q, X, Y, Z. Domains selling for less than the above figures would represent a strong buy in today's market. Premium letter only domains tend to fetch a 500% to 600% premium (or more) over the Minimum Wholesale Price. Mixed letter quality domains have valuations somewhere in the middle of these two extremes.

That's still 5X-6X for premium only domains.

 

[Biggie]

Is there a reason why 3 character domains are so high in price? I'm not going by a personal appraisal but I use 3character.com as a guide considering they go by recent sales.

For example, there's a LLL domain I would love to get, according to that site the .biz should be worth about $35 but the one I want is on sedo for $300 Euros ($385 US with current exchange rates). Yes, I'm sure the domain is considered a premium (7.5 million Google results and I'm sure with a very high search volume) but would this justify over 10X the "average" sale price?

Not just with this one, quite often I see LLL domains for sale that are well over 5X the average sale price, some 10X-20X the average sale price. I do undetstnad that LLL and NNN domains are a great investment for the long term but it seems like people are trying to get tomorrow's prices today.

Is 3character.com a legit site to base a "guess" on the value of these domains or do many sales go unnoticed by them (thus making the figures they post unreliable?).

i know you didn't just find 3char, so why you still question their credibility

 

[rns621]

IMO their "minimum wholesale price" is not in-line with my observations...LLL.org for 195? LLL.com for 4750? I'm not sure where they are looking for their historical sales data, but I know plenty of domainers who would be happy to get 195 for their random LLL.org. I use estibot.com/sales to track recent data and I would estimate the data to be closer to $100 minimum wholesale for .orgs and maybe 3500 for .coms...

 

[VirtualT]

pricing is all based on what he or she wants to sell, anyone can launch a website and list a serious of numbers and claim a 3 character is worth this much, at end of the day the domain is worth what the buyer is willing to pay.

This, plus Sedo prices would be aimed more to end users than domainers

 

[Poohnix]

Of course a seller always can set any price he wants, if he thinks there may be any buyers for that price. As a seller, I often do this myself. I'm usually not into flipping domains on a daily basis, reseller to reseller, so I mostly set a price that I believe the right end user might pay, sooner or later. Be it this week, or next decade.