Do You Need A Domain Appraisal?

People have several reasons as to why they would need a domain appraisal but you should not get one if you don’t really need it. Each situation is unique in the exact reasons why you would need a domain name appraisal but this article will focus on only 4 of the most 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 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 name: You will first have to decide what the domain name is really worth to you. Unless you are going to be speculating and hope to re-sell the domain name later at a higher price you must consider the actual value of the domain for your purpose. It can also be very wise to get a domain appraisal so you have a solid idea as to what it should sell for in the secondary market. The appraisal can also be used as leveraging tool in bargaining 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.

You need to always remember that a domain appraisal from anyone whether it is a paid professional or a random person is only an educated guess. You will need to determine exactly how educated that guess may be. A domain name as with anything of value is only worth what some one 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.