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Domain Name Appraisals - Money Well Spent or Money Wasted?

Websites offering domain name appraisals are increasingly common, but are all services equal? And is the result actually worth the expenditure?

=== Why Get a Domain Name Appraised? ===

You'll fall into one of two categories - either buyer or seller. For someone wishing to buy an existing domain name, an appraisal should indicate whther the asking prices is realistic or not (bearing in mind that you may also paying for reputation etc...). For the seller of a domain name, an appraisal can increase the potential sale value and/or your bargaining position in the sale.

=== Are all Domain Appraisal Services Equal? ===

Domain appraisal services can cost anywhere between a few dollars and a few hundred dollars, and it is generally true that you get what you pay for. Many of the lower-priced appraisers use the same software, which given the rate of change of the Internet world, is very quickly outdated. This software also only appraises a few top level domains (TLD) e.g. .com excluding holders of most other TLD e.g. .uk. The software is also very subjective, meaning that two different users can declare very different values for the same domain. Higher priced services tend to appraise each domain individually, and take more factors into account, such as current market conditions, comparable sales and relative searches in addition to factors such as name length, commercial potential and whether the name is easy to remember and spell.

=== Choosing a Domain Name Appraiser ===

When having a domain name appraised, ensure that your TLD is on the list! If the appraiser doesn't accept country level domains (such as .uk) and charge a low fee, chances are they are using the subjective software described above, and the appraisal will not be worth the expenditure. On the other hand, if you are selling a well-known, highly-trafficked domain, a higher cost and more in-depth appraisal will be money well spent.

Finally, if you are buying a domain name and are shown a copy of an appraisal by the seller, find out where the appraisal is from, before believing everything you see before you!

=== Conclusion ===

Domain name appraisals are a useful tool, but their value depends on how the appraisal is generated, and the actual price of a domain name will ultimately depend on market forces, whatever the appraisal certificate says.

About the author:

Emma Kalson is the owner of http://www.littlefishwebdesign.com and has been designing websites for about 10 years. She doesn't believe in unnecessary bells and whistles on websites and wants to help remove some of the myths surrounding website design and search engine activity.