Many people use the automated appraisals shown on domain name auction websites as a form of valuation. I don’t always agree with the valuations shown, and I think these tools can be far off in their valuations. You may disagree with me about whether or not auction participants use these appraisals, but I think it’s pretty clear they have an effect on bidding when considering how auctions have changed since GoDaddy and NameJet appended valuations to auction listings.
There is some nuance to using the appraised values though. As I previously shared, a domain name will typically have a higher appraised value when there are multiple extensions registered for that keyword. This appraisal figure may be misleading if the original registrant that let the domain name expire had also registered additional domain names in other extensions. The appraised value may be artificially inflated as a result of the algorithm detecting other registrations.