Don’t ignore automated appraisals. They can be helpful.
I had a really good start to the month for domain sales. One of the sales led me to audit my listing prices after reviewing GoDaddy appraisal values.
The .com domain sold for $6,000. When I received the sale email, I looked back at the domain’s history and liked two things I saw. First, I paid $164 for the domain in a GoDaddy auction in 2019. So a nice return. Second, I had agreed to sell this domain in 2020 for $1,750, but the buyer never paid. That felt good, too.
But then I noticed that the GoDaddy appraisal for the domain was over $7,000. I wondered if I left money on the table.
While researching the name some more, I found that many people had registered the domain in other extensions since I acquired the domain in 2019. It makes sense that the value increased.
Ultimately, I’m fine with the sale price. But it also spurred me into action. I decided to review the domains GoDaddy appraises the highest and compare them to my list prices.
I know many people reading this don’t like GoDaddy appraisals. But the complaint I hear is that they undervalue domains, not overvalue them. So again, I’d argue GoDaddy appraisals are very useful if used correctly. In this case, that means that GoDaddy might have noticed something about domains I owned that I haven’t noticed myself, such as an increase in demand for that SLD.
It’s easy to compare your list prices to GoDaddy appraisals if your domains are at GoDaddy. You can select these data points as columns and put them right next to each other:
I scrolled through every domain valued over $4,000 and ensured I was happy with my prices. In some cases, I think GoDaddy overvalues the domains, so I don’t automatically price them higher. And there’s a benefit to pricing domains below the appraisal value: GoDaddy promotes this when someone searches for the domain:
The bottom line: even if you don’t like GoDaddy’s appraisals, they can be valuable to domain investors when used correctly. The same goes for Estibot. If you haven’t done it in a while, I recommend checking valuations on your domains to see if automated systems have identified something about your domains that perhaps you haven’t.
Post link: When’s the last time you looked at GoDaddy appraisals for your domains?
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