There are many reasons why you would need a domain name appraisal but there is no reason to get one if you don't need to. Every situation is unique in why you would want a domain appraisal but we will focus on 4 of the more common reasons.
1. Selling a Domain name: If you need to sell a domain then getting a domain appraisal can make sense. Many times people will set no selling price or will set a price so high that it is totally ridiculous. Sellers are afraid they might sell it for less than what the buyer would actually pay which ends up scaring off possible buyers, or they do not set a price that will at least be reasonable to spark a buyers interest to start a talks.
If you are a person with a history in domain name sales then it is possible you would not even need a domain appraisal because you would already have the knowledge as to what the value of the domain already is. However, if selling domains is not something you have any experience in doing it would be a wise idea to go ahead and get a domain appraisal. The domain appraisal will give you the knowledge you need so that you can know what to expect the domain name to sell for and that will allow you to set an asking price that is reasonable.
2. Buying a Domain name: One of the first things you need to determine is what the domain name is actually worth to you. If you are going to be speculating with the idea you will later re-sale the domain at a higher price is one thing, but if you are going to use it you will need to know how much value it will bring to you. Getting a domain appraisal can also be wise so that you have a good understanding as to exactly what the domain will sell for in the market. A domain name appraisal will also give you leverage when trying to bargain with the seller.
3. Tax Deduction: When you donate a domain name to any non-profit origination recognized by your country it is often possible to get a tax deduction depending on the tax code of your country. Often times getting a domain appraisal from a professionally recognized company is a necessary step in getting that deduction. In the US the process is rather simple if the appraisal is for less than $5,000, however it does get more complex when the deduction is more than this amount.
4. Asset value: Trying to value your assets such as the value of your website or company it is very important to remember that the domain name will also hold value. A domain name appraisal will help you in knowing exactly how much that asset is worth with out having to put it up for sale.
Something you need to keep in mind is that a domain appraisal from a friend or a professional is only and educated guess. It will be up to you to figure out how educated that guess really is. Just as anything of value a domain name is only worth the price some one is willing to pay.
Something also to be aware of is your ability to negotiate with the other person. It will be your responsibility to have as much knowledge as possible on the subject so the you make the best choice for your situation.
1. Selling a Domain name: If you need to sell a domain then getting a domain appraisal can make sense. Many times people will set no selling price or will set a price so high that it is totally ridiculous. Sellers are afraid they might sell it for less than what the buyer would actually pay which ends up scaring off possible buyers, or they do not set a price that will at least be reasonable to spark a buyers interest to start a talks.
If you are a person with a history in domain name sales then it is possible you would not even need a domain appraisal because you would already have the knowledge as to what the value of the domain already is. However, if selling domains is not something you have any experience in doing it would be a wise idea to go ahead and get a domain appraisal. The domain appraisal will give you the knowledge you need so that you can know what to expect the domain name to sell for and that will allow you to set an asking price that is reasonable.
2. Buying a Domain name: One of the first things you need to determine is what the domain name is actually worth to you. If you are going to be speculating with the idea you will later re-sale the domain at a higher price is one thing, but if you are going to use it you will need to know how much value it will bring to you. Getting a domain appraisal can also be wise so that you have a good understanding as to exactly what the domain will sell for in the market. A domain name appraisal will also give you leverage when trying to bargain with the seller.
3. Tax Deduction: When you donate a domain name to any non-profit origination recognized by your country it is often possible to get a tax deduction depending on the tax code of your country. Often times getting a domain appraisal from a professionally recognized company is a necessary step in getting that deduction. In the US the process is rather simple if the appraisal is for less than $5,000, however it does get more complex when the deduction is more than this amount.
4. Asset value: Trying to value your assets such as the value of your website or company it is very important to remember that the domain name will also hold value. A domain name appraisal will help you in knowing exactly how much that asset is worth with out having to put it up for sale.
Something you need to keep in mind is that a domain appraisal from a friend or a professional is only and educated guess. It will be up to you to figure out how educated that guess really is. Just as anything of value a domain name is only worth the price some one is willing to pay.
Something also to be aware of is your ability to negotiate with the other person. It will be your responsibility to have as much knowledge as possible on the subject so the you make the best choice for your situation.
About the Author:
Roger can help you understand a domain name appraisal and how to order a domain appraisal.
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