I have been curious about how GoDaddy’s appraisals change once an auction on its GoDaddy Auction platform closes. I am curious to see if the appraised value goes down since most auctions close below the appraised value, and the majority likely close considerably below that figure. The difference between appraised value and the auction sale price is expected since auctions are generally wholesale purchases while appraisals should align closer with the retail value of a domain name.
I checked to see how a domain name I won at GoDaddy Auctions for around $1,500 appraised a few months after the auction. From my recollection, the appraisal has not changed much since then. When checking, one thing I noticed is the auction sale price was not listed under comparable sales, although a prior sale of this domain name was listed. I checked a few other domain names I won at GoDaddy Auctions at different price levels, and none of the sales were shown under comparable sales.
I reached out to Paul Nicks to ask how much of an effect the auction result has on the GoDaddy appraised value and why the GoDaddy Auction results do not show up under comparable sales. Paul told me GoDaddy does not include auction sales into its appraisal algorithm, nor does it list auction results under comparable sales. GoDaddy considers its auctions platform to be a wholesale marketplace, while its appraisals are assumed to be retail pricing.
I do not love the GoDaddy appraisal tool, especially when it comes to higher value domain names. While it may be helpful to sell lower value domain names, I think it can be a detriment to higher value deals where the prospective buyer has set a budget based on the appraisal from GoDaddy. With that said, it is good to know that GoDaddy does not include GoDaddy Auction results in its algorithm, nor does it share auction sale prices.