There’s an interesting discussion about domain names in an Active Rain blog post that was written by Kathleen Daniels, a real estate broker in San Jose, California. In the article, Daniels briefly discusses her interaction with a domain broker regarding a domain name she is interested in buying. Daniels seeks feedback from others regarding the $14,000 asking price.
I’ve done several deals with real estate agents and companies in the real estate business. I have been a buyer and seller of US (city)RealEstate.com domain names and am still buying and selling them when great names are available at great prices. Because of my involvement in this vertical, I thought this article with over 75 comments is a great look into the minds of real estate agents regarding how they view domain names.
The first thing I noticed is that many people told Daniels that $14,000 for the domain name is too much money. To quote the first comment, “Yes, $14,000 is way too high!” I found this to be very strange considering the domain name was not revealed (probably smart to not share it for competitive reasons). This is almost like me asking, “Is $750,000 too much money to spend on a house?” and having people share their feedback without knowing whether the house is in Beverly Hills or Burbank! Obviously the quality of the domain name is the most important factor, so I am not sure how people can say that $14k is too much without knowing the name.
There are some people who did offer good advice in the comment section. Comment #39 is especially good: “Everything is dependent upon the return. Would I pay $14K for a great domain name? you bet…but it would have to really be good. One deal from a good domain can be more than the purchase price.” If the domain name mentioned by Daniels had dozens or hundreds of targeted visits per day, there is a chance she could make back her investment very quickly. If it’s a great domain name, there’s also burndown value in the future, meaning that the domain name could actually appreciate in value, and the owner can sell it in the future.
I’ve had good success with real estate domain names, and I’ve also had real estate domain names that wouldn’t sell for one reason or another. There have been times where I received a super low offer ($100) which was followed up by an offer of close to the asking price from someone else in the same market. Real estate agents look at domain names much differently than they do the real estate and properties they market. I’ve always found it a bit strange considering that I look at domain names as online real estate.
Interestingly, someone mentioned the .Realtor extension that will be coming out. I think we are probably going to see quite a few .Realtor domain names down the road, and I would bet that .Realtor will be one of the biggest dot brand success stories in the future.
Regardless of what you think of the comments made following the Active Rain article, I think it’s well worth a read to get an idea of how real estate agents think about domain names. You may also want to check out my article about negotiating with a real estate agent.
Thanks to TLDNetworks.com for sharing the article.