I was discussing the price of a domain name with a seller, and he shared a few public comparable domain name sales to justify his asking price. One of the comps seemed abnormally high to me. Although the sale price was apparently accurate, the domain name sold many years ago and the market has changed since then.
As a buyer, it is important to look beyond the sale price of the domain name. The date and venue are also important considerations that should be made by the buyer to understand more about the sale.
A domain name that sold ten years ago may be a good comparable sale, but the value has likely changed since then. Some values have gone way up and others have gone down. Even sales that occurred just a few years ago may involve domain names that fluctuated in value substantially.
The venue is also an important consideration. Sales that occurred on NameJet, DropCatch.com, or GoDaddy Auctions are likely sales at wholesale prices. Domain names that sold via Sedo, Afternic, or via domain brokerage are most likely end user pricing. Domain investors should obviously use this information to their advantage when negotiating a purchase.
It’s always a good idea to have a good idea about comparable sales. It’s just as important to understand that the date and venue are important aspects to consider.