GoDaddy has made its domain name appraisal tool public, and visitors are now able to appraise any domain name. I believe the algorithm used for these (free) automated domain appraisals is the same one that has been used within GoDaddy Auctions and the appraisal provided in domain settings pages within a user’s control panel.
When a visitor types in a domain name to be appraised, GoDaddy provides its appraisal along with what it believes is supporting public comparable sales. The maximum valuation is $25,000 and domain names that are valued at $25,000 shows a message that says “Estimated Value: more than $25,000.” The minimum valuation is $100, and domain names that are valued at less than $100 have a message that says “Estimated Value: less than $100.” In my opinion, $25,000 is pretty low for a maximum appraisal.
On the sidebar, GoDaddy shares some of the reasons for why a domain name is valuable. Some of the factors include comparable sales, the domain name extension, the keyword(s), and the length of the domain name. If the domain name is listed for sale via Afternic, there is a clear purchase link so a visitor could click through to buy the domain name via GoDaddy.
I looked up several higher value domain names my company owns, and some of the appraisals seem very low to me. I would hate for a third party to try and use a GoDaddy automated appraisal as justification for a lower offer or to be pushed back on my price because of one of these appraisals. With the popularity of GoDaddy, I am sure it is a matter of time until that happens.
The tool is still in beta, so it will likely be refined over time.
Interesting Tool. I imagine it gets better overtime, although you do raise a good point as well as others on some other blogs for higher end names.
If it does stand the test of time it could make it harder for higher price names to sell for what owners want or think they should get.
It will be interesting to see overtime if GoDaddy or some other large company acts like a market maker in the stock market and says I’ll buy the name at that price or a % off that price.
GoDaddy Auctions/Afternic probably stands to benefit as more people may list names rather than renew or drop.
I tried to appraise domain name godaddy.com and got this message “Sorry, we are unable to provide a result for the domain name you provided”. Scared to appraise its own domain ? You bet.
One thing not to like about this tool, is that if a potential end-user/buyer searches for a name you are selling, and it is a name that you previously purchased on the aftermarket that was a publicly reported sale, the name along with its previous reported sale price also shows up under the comparable sales section. Obviously that could be detrimental for sellers. Why would a buyer ‘buy now’ at a price you set when they can see right there the same domain previously sold for a fraction of the price?
Any thoughts on the accuracy of appraisals provided by this tool? I ran a few, was pleased, and may point buyers negotiating for a lower price to this site.
Way too low for most. I am a buyer at those low prices.