Do Domain Appraisals mean anything?

I feel like I’m hearing more and more that domain appraisals are not a good indicator of a domain’s true value. A Senior Member on Domain State recently said,

"Unfortunately, those certified appraisals (from godaddy and all other companies) aren’t worth much. Most of the time, they are quite inaccurate." [See Link]

Certainly not the first time I’ve heard a comment like this. I’ve always been a bit hesitant to put much of my budget towards appraisals. I think that domains have a different value based on who’s looking at them. If it was my life dream to open a Canary Zoo, then has more meaning to me than most people. If, on the other hand, I’m a domainer trying to make a quick buck I might shell out $20-$30 for this name as the name itself has little meaning to me.

So I’d like to take a poll. Please leave a comment with 1-2 sentences about your thoughts on domain appraisals – are they a good idicator of a domain’s actual value? It would be very interesting to see what a sample-size of 40 or 50 domainers would yield. I don’t want to bias it so I’ll stay-out of it for now!

{ 2 comments… add one }

  • Damir February 24, 2008, 10:47 pm

    When it comes to the paid domain name appraisals I know that it is a WASTE of money 100%.
    Godady, sedo, afternic and others alike do NOT know the true value of domain names at all.
    The value of a domain name is determined between the need to buy it the buyer (need it) in $$ value of the need to sell it by the seller.
    I would recommend that the person renews the domain name for another year or two instead of wasting the money to have the domain name appraised by the so called gurus like godady, sedo, afternic or others alike.

  • Francois February 25, 2008, 5:09 am

    Around 2 years ago we compared apprasail services appraising the same domain.
    GoDaddy has by far the worst appraisal.
    Moniker and SEDO were the ones coming with the more realistic appraisal results.

    There is a STUPID theory that domains cannot be apraised. It’s false!
    Now the range value you get is simply a statistically value based in domain metrics and past sales. It’s not the price the domain will be sold.
    When it comes to sell come what Ricks and I call now “circumstances” parameters.
    These parameters can lead to buy/sell at prices out the domain valuation range. is a good example.


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