Surprized with Moniker Appraisal

[dnbroker]

Gents,

I ordered an appraisal from Moniker (not for the first time).
The domain was previous acquired and there is a record at NameBio.

However, Moniker did not considered that sale and appraised the domain far below the last sale.

What can it mean?
The last sale was overpay?
or
Moniker is not doing proper job?

Thanks for your thoughts.

[INVIGOR]

...

[dnbroker]

The last sale record at NameBio indicated that the domain was bought for the price 4 times more that the appraisal from Moniker.

However, an appraisal from Accuratedomains gives the number twice bigger that the sale record.

Strange (for both).

[David G]

I imagine another reason for alleging low appraisals by Moniker is that they push very hard for extremely low reserves to get in their auctions so do not want those who are going to list at an auction to use their own appraisal as a way to justify a contrary high reserve.

That is just my theory and i have no evidence it is correct.

[John Mauriello]

The Moniker appraisals, like home appraisals, are based on recent comparable sales. That in addition to revenue and number traffic analytics.

If there have been no recent comparable sales or no stats submitted, then the appraisals may come back on the low side as would happen in the housing market if certain data was omitted.

In a real estate appraisal the base appraisal is adjusted based on the comparable sales, condition of the home, home improvements, and other amenities. If the home appraiser is not aware of a 50K kitchen remodel planned or a new AC system installation , those omissions will change the appraisal value. This is why it is important to submit as accurate stats as possible.

Regarding the auctions and appraisals. The Moniker official appraisal system is not really used as the primary source by sellers to guide them in an auction reserve submissions, and Moniker doesn't recommend submitting names to auction at the same price level as the appraisal -as buyers usually won't bid on names that are already priced at full value.

The auction committee provides guidance for free on submissions and makes reserve recommendations on certain submissions if the name has strong analytics but the reserve price is set prohibitively high.

We get over 50,000 submissions per auction event to select from, so we ask for reserves to be lowered based on the competition and other similar quality names submitted. If the name is priced right for the target market (conference attendees and internet bidders) , the auctions will ultimately determine value when the name sells.

In addition regardless of auction sellers generally say there are too many names auction list that are priced too low and buyers genearally comment that there are too many names priced too high. The wide variety of valuation opinions really all depends on the viewpoint, and buyers and sellers are traditionally of differing opinions. That's why comparable sales data is so important.

Because of our widely used Escrow and private brokerage services at Moniker we have a ton of comparable sales data to pull from when doing our appraisals.

I hope that helps.

Regards,
John Mauriello
jmauriello@moniker.com
954-861-3536
800-688-6311 Ext. 3536
FAX: 954-984-0209
ICQ: 341620056 AIM: monikermaurie
MSN: jmauriello@gmail.com

[INVIGOR]

...

[John Mauriello]

Appraisals are not perfect, as there may always be someone out there willing to pay more then an appraisal value. If an end- user with deep pockets they really wants a name for strategic branding purposes the appraisal may not be as relevant. However that may never happen, or take years. Ultimately the name is worth what it can be sold for in a competitive market. The auction is one way where we create a competitive market.

Also, I also noticed it still hasn't sold at the sales price you have it valued at.

[PRED]

warning for noobs. NEVER pay for any appraisal. they are all basically a rip off.

if you want a reseller appraisal then dnforum appraisals section will give you the best free appraisal you'll get with some of the most experienced domainers around (hopefully)

I repeat NEVER pay for for an appraisal from anyone, it means diddly to an enduser or a reseller. as soon as you mention you have an appraisal for a domain to a buyer you may as well tell them you're a noob, or at best not wired up right

imho

[Seraphim]

I recently bought a domain from a non-domainer, and they insisted I let GoDaddy broker the massive $XXX deal. So I bit my tongue and went through it, and it turns out GoDaddy's "broker package" included a free appraisal. So like a kid on Christmas, the moment I got the appraisal notice I ripped it open, and low and behold it's the exact dollar amount I bought the domain for. Rocket science baby!

[jasdon11]

I recently bought a domain from a non-domainer, and they insisted I let GoDaddy broker the massive $XXX deal. So I bit my tongue and went through it, and it turns out GoDaddy's "broker package" included a free appraisal. So like a kid on Christmas, the moment I got the appraisal notice I ripped it open, and low and behold it's the exact dollar amount I bought the domain for. Rocket science baby!

LMAO - at least it was accurate!

[David G]

......This is why it is important to submit as accurate stats as possible.

Assuming you mean traffic or revenue stats (and a reason I am having some difficulty accepting that) the last few times I tried (unsuccessfully) to get some of my better traffic names in your auctions I was told by acct execs that Moniker does not want to use traffic stats or revenue data to justify prices and you basically went on name value only. (Namemedia/BuyDomains told me the same thing re a possible bulk sale).

When I said I can supply the stats anyway to justify my reserves I was told stats are not really a factor and reserves of only $500 are recommended (which is was why I never listed any).

[John Mauriello]

Trader-

The statement I made pertained to appraisals.."This is why it is important to submit as accurate stats as possible" .....for appraisals. As mentioned above appraisals are not required for auction submissions nor are submission of stats. The auction selection process and the official moniker appraisal are entirely separate and unique processes. In regard to submitting stats for the auctions, unless the name is parked on Domain sponsor we cannot verify the stats, and therefore do not REQUIRE them for auction submissions.

[Rockefeller]

It means that moniker appraisals, like any others, mean nothing.

[John Mauriello]

Moniker appraisals are the most widely recognized appraisals on the net. They are the only appraisals that you can get a 60% collateralized loan against through Domain Capital. The Moniker appraisals are also recognized as accurate by the IRS. The moniker appraisals are based not only on accurate traffic analytics , but more importantly we use a database of recent public and private comparable sales. The private sales data is drawn from the very widely used Moniker Escrow service . Of course, as discussed above, as in real estate a large majority of sellers will react that the appraisal is too low and the large majority of buyers will argue the appraisal is too high.

[David G]

Trader- The statement I made pertained to appraisals.."This is why it is important to submit as accurate stats as possible" .....for appraisals. As mentioned above appraisals are not required for auction submissions nor are submission of stats. The auction selection process and the official moniker appraisal are entirely separate and unique processes. In regard to submitting stats for the auctions, unless the name is parked on Domain sponsor we cannot verify the stats, and therefore do not REQUIRE them for auction submissions.

OK, my bad, thanks for pointing out the difference.

[Edder]

Which of the "professional" appraisal services gives the most inflated appraisal? From a sellers perspective, I would think a $20 certification like that might help. Anybody have any experience selling an appraisal-backed domain?