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: When you find that you need to sell a domain name then getting a domain appraisal can often make sense. Often people will not set a selling price or may even set a value so high that it is seen as ludicrous. Many sellers are worried they might sell the domain for less than what the buyer is really willing to pay so the end up scaring off a buyer by setting a very high asking price. Sometimes they will also not set a price at all which if they set a reasonable price could have gotten a buyers attention.

If you have experience in domain sales it is possible you would not need to have a domain appraisal because you would already have a good idea what the value of the domain will be. However, if buying and selling domains is new to you then it can be a very wise idea to get an appraisal from a experienced and reputable domain appraisal company. A domain name appraisal will tell you the value of what you can expect the domain to sell for which allow you to make a wise decision on the asking price of the domain.

2. Buying a Domain: You will first need to asses exactly what the domain name is worth to you or your company. You must consider what the actual value of the domain is for your purposes unless you are going to speculate and try and re-sell the domain later for a higher price. It is also wise to get a domain name appraisal so you can have a good idea as to what the domain name should sell for in the open market. The domain appraisal can also be utilized as leverage in bargaining with the seller of the domain.

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 valuation: When trying to place a value on your assets such as a website or company then it is important to know that a domain will also have value. Getting a domain appraisal will let you know how much the domain is worth.

One thing you need to remember is that a domain name appraisal from anyone whether from a random person online or a paid professional appraiser is only and educated guess. You will have to determine exactly how educated that guess actually is. A domain like anything else of value is only worth what another person is willing to pay.

Another factor of course will be your ability to negotiate. It your responsibility to be as knowledgeable as possible so that you can make the wisest decision on buying or selling a domain name.

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