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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:
GoDaddy registrar account with godaddy appraisal values next to list prices on afternic
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:
GoDaddy listing for softwareonlien shows its estimated value is more than the purchase price
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.
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Daniel says

Never, the domain king says any automated appraisals are trash and i believe Rick
J.R. says

Congrats on the $6K sale; very nice ROI.
I use GD appraisals as a metric for wholesale purchases, not retail.
Josh says

The problem with Estibot, Godaddy, and all other automated systems is that each domain is unique, with subtle cultural and language-specific differences and nuances, making comparable domains difficult to find and understand without significant amounts of research. This work doesn’t blend well with an automated algorithm, which is why I’ve sold domains for 20-30x what Estibot or Godaddy says they are worth–and why some domains I have will *never* sell for what Estibot or Godaddy says they are worth because they aren’t worth it.
Also, Godaddy has a financial conflict of interest in providing appraisals. It doesn’t really matter to them if a domain sells for $3k or $5k. What matters is they get a commission–and a commission on something is better than a commission on nothing! It’s better to convince a domainer to sell so Godaddy gets a commission than to not get a commission at all. The seller may sell later to a different buyer in a different venue (or a direct whois email), leaving GoDaddy with nothing. Therefore, they have an incentive for appraisals to run low.
Mark Thorpe says

I think you praise GoDaddy too much now.
You’re all about GoDaddy.
Real domain investors know automated domain appraisals are useless.
Andrew Allemann says

I guess I’m not a ‘real’ domain investor then
Mansour mansour Elseify says

No you are not a real domain investor godaddy brokers cost me hundreds of thousands of dollers through the years they call themselves domain brokers, their job is to rob sellers of their valuable domains when you get an offer for over $5k for your domain most likely your domain is worth 6 figer be wise good luck. the idea is not to double your money it is to get the best price you can from a specific buyer.
Richard B Morris says

“Godaddy has a financial conflict of interest in providing appraisals.” While like you I’ve had big problems with GD, the changing of their appraisal/valuation process has had a major negative impact on my portfolio. As a result I’m seeking a top “Class Action” law firm to sue Go Daddy……anyone interested in joining me?
Meriah says

I will still marry Andrew you! l Iove Meriah xoxoxox
Richard B Morris says

Until recently about 200 of my .com domains held at GD were appraised at over $1,000, and I had purchased many of them because of GD’s appraisal/valuation. Today the very same 200 domains are all appraised/valued @ < $100. Like you, i'd use GD appraisals to help sell a domain, but in my case GD has screwed me royally. Finally, i'd be more than happy to provide examples for anyone that's interested…..WTF!!!
Jose says

I had two premium 2-letter domains in Uniregistry, having paid more than $2K now at Godaddy in a costumer account (which looks like that of a kindergarten school, which differs from the more professional Uniregistry’s) these two premium domains for Godaddy are appraisal as I see them in my costumer account for $500 each.
I’m going to buy GD shares.
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