Domain values

What kind of budget should I have for purchasing a domain?

[NFrias]

I would like to buy a domain name that is four words long and composes a phrase which is easy to remember. For example, www.howto******.com. The domain has already been registered but is currently not being used. I would like to make an offer, but I am concerned that my budget is too small based on the prices I see people asking. Can anyone give me an estimate of what is a reasonable budget to have for this purchase? Thanks.

[Webwork]

Unless the 4 word phrase is 1) highly commercial; 2) high traffic because very popular search phrase for all 4 words in the domain, in the order spelled in the domain; 3) the domain has some proof of search "with extension", i.e., people type in the full domain for direct navigation; 4) PPC cost for the 4 word phrase is >$.25/click+ - unless you hit all those points - then it's unlikely that if I were in your shoes that I'd spend >$1,000.

[SedoCoUk]

A four-worder wouldn't generally be a premium domain so I'd imagine you should be able to achieve a reasonable price. Don't forget it's currently a seller's market out there, though, so be prepared to haggle! I'd also bear in mind that if the domain name is not actively for sale, your offer may have to be sufficient to awaken the owner's interest in selling. Like Webwork said, don't be afraid to use stats, justification and comparable sales. There are lot of multi-word domains selling every week for less than 1000 USD so finding relevant sales to use as comparisons should not be too difficult. Good luck!

[kevinpate]

there's also a potential to stay dirt cheap, i.e.
learnabout****.com
****instructions.com
****advice.com
****instructions.com
youcan***.com

none are perhaps ideal, but there's often more than one way to skin a critter