Domain Name Appraisal - Estibot

[dailypress]

hi all,

How accurate is Estibot?

I am purchasing a very valuable domain. Estibot estimates the domain to be worth over $180K. The seller says the domain has been appraised to be worth $150,000 (he did not mention the source of appraisal) and is willing to sell for $80k cause he is need of cash.

We agreed on a package where I would pay about half of it in cash and the rest with other terms and conditions.

I own other TLDs of the same keyword and purchased the .net/.org version for about $1,500 and paid the amount appraised by Estibot. This seller had used Estibot valuation to set and justify his Selling price.

How accurate is it anyway? Does it estimate more or less of its true value?

I know there are many different factors in evaluating a domain's worth and it really depends on how much a buyer is willing to pay... But if we can review and name a few examples of recent sales and how you justified the price to list for sale, or buy a domain, I think it would help me a lot.

any extra info and tips/suggestions would help too :) this is so far the biggest purchase I would be making... Previous purchases were maximum in the $3-4k range.

I'm also listing most of my old domains for sale. I could use the money.

thanks in advance,

Very Nervous DailyPress :)

[Webwork]

My short version of answer: I view its results "for entertainment purposes only". YMMV.

[dailypress]

I view its results "for entertainment purposes only"

thanks for your reply Webwork. What's your solution that can help me make a better decision on this purchase?

[Webwork]

Know your market and marketing REALLY well. Get type-in data. Have a detailed business plan in advance of contracting and the wherewithal to execute that plan. Have the funds to build out the domain into a competitive site before striking a deal.

A great domain, by itself, is not a business. It's a nice start but, before throwing down $80,000, I'd be ready to "hit the ground running".

[buckworks]

Webwork, what do you suggest when the broker for one's dream domain refuses to share info about type-ins?

[gpmgroup]

Estibot can be quite good... it's certainly better than most domainers lol. Sure it doesn't always get edge cases right but if you look at similar domains as well it can be useful. DomainIndex comes at it from a different perspective.

[dailypress]

Yes, I agree. I have a plan and already built the script that I would like to use on this site. I would be developing the site right away.

Get type-in data

Yes, How exactly?

DomainIndex comes at it from a different perspective.

DominIndex estimates the domain to be worth the exact amount it was purchased a few months ago!

[Webwork]

Webwork, what do you suggest when the broker for one's dream domain refuses to share info about type-ins?

You can either a) assume the worst (no / miserable type-in traffic); or, b) assume the seller doesn't wish to do business with someone who intends to peg their offer/price based upon multiples of traffic.

In the past folks who asked about traffic numbers would often make an offer based upon 1-3x the value of the type-in traffic. In some cases that may make sense. In others such offers were BS.

Everything about domain transactions tends to be fairly unique "to the domain". That's why I shun rote ("by the equation") valuations - by man, woman or machine.

[mobrando]

I attempted to buy a domain from Fabulous recently and they declined to share type in traffic. I told them it would help me in the decision to purchase the domain. Mt position was they had the domain overpriced and told them so. The only way I would have given into the asking was if the type in was a strong number.

I think those estimating services can give you guidance, but they can also be way off. Estibot valued a domain at $15, later that day I wound up selling it within hours of listing for more than 30 times that figure.

[dailypress]

Just an FYI, the domain I recently purchased receives way less type in traffic that I had predicted and hoped for. But oh well still very happy with my purchase.