How to handle the domain transaction

We agreed on a price, now what?

[zomega42]

I've never bought a domain before for more than a few dollars so I haven't had to deal with this.

I just made an offer of $1500 on a domain and he accepted, and wants to know how I want to pay him. What's the best way to do this? Is credit card or paypal safe? Am I better off using some kind of escrow to be sure it really gets transferred? I could use Network Solutions certified offer service but it would cost me about $100.

Are there other options?

[ccDan]

I've never purchased a high priced domain either, but credit cards and PayPal both give you some protection. Credit card companies seem to err on the consumer side rather than the merchant side. PayPal may as well. Read the fine print of the agreements to be sure. PayPal ought to have that all stated on the web site, as far as claims process and so on.

Escrow would be the safest way, but credit cards and PayPal do give you some protection, though it may take longer to get your money back, as they'll have to go through a step-by-step process.

You could also call the 1-800 number on the back of your credit card to ask about your rights and for specific info on "what if."

[cfx211]

I used an escrow service on a domain sale of $2k and found that the cost was worth the piece of mind it gave me.

[mack]

I used an escrow service on a domain sale of $2k and found that the cost was worth the piece of mind it gave me.

Defiantly, the escrow service will act as a fair middleman. It ensures the transaction is as safe as possible. Sometimes a sale can be nervous if you do not know the other party. An escrow makes the process safe and fairly simple. it is also a lot cheaper than hiring a lawyer to draft up a legal agreement between buyer and seller.

Mack.

[WolfLover]

I agree, go for the $100.00 for the escrow service. If I were buying a domain name for that price, I'd look at the escrow service as insurance. It's a lot better to "lose" $100.00 than to lose $1500.00.

Plus sometimes peace of mind does not have a too high a cost. :-)

[edited by: WolfLover at 7:43 pm (utc) on Sep. 1, 2006]

[topr8]

well unless the man accepts credit cards then you can't use one! (except through a third party such as paypal)

if he does then using a credit card is cast iron as long as you have an invoice/receipt.

[ccDan]

So, the most secure solution is to pay the escrow service through PayPal using a credit card. :-)

[zomega42]

Okay, I'm going with the escrow.

Given your input, I decided that the alternative was probably to pay by credit card (he does accept credit cards) and have a signed agreement, but I'd rather pay $100 than worry about writing something up and getting it signed.

Thanks!

[wmuser]

Go for escrow.com service,they are cheap and reliable

[nick_irvine]

yeah use escrow.com instead of SEDOESCROW, monikerescrow etc.

Escrow.com charges you just 0.89% (or something similar to that amount) of the transaction cost as fees while sedoescrow charges you 10% of the transaction cost.

I have used escrow.com plenty of times and would be glad to recommend it to anyone.

[stu2]

I think the amounts you quote for both Escrow and Sedo are both incorrect, Nick. Escrow's own fee calculators quotes $48.75 for Standard (wire transfers, money orders, checks) and $94.50 for Premium Service (PayPal and credit cards), on a $1500 transaction. Sedo only charge 3% if you bring them the escrow transaction, and they don't charge any additional for wire transfer disbursals.