How accurate are automated domain appraisals ??

[acronym007]

The same as real property appraisals, they're worthless. in the real estate industry we use a word, a particular word. It's an opinion of value versus an estimation. A computer or software can estimate but it cannot give an opinion. There are too many factors to arrive at a fair opinion of value. Software cannot see everything. Do not rely on any automated program for your house or domain property.

 

[BiggieBiggie is verified member.]

Ok, Please, tell me an objective method to prove than domain appraisal tool can be usefull.

I previously asked for reader to provide their own list of generic domain, for objectivity purposes.

I honestly believe than, in ten year, the number of people who will think than domain appraisal tool will be a minority.

the question was not whether they are usefull or not, the question was "how accurate are they"

and the answer is ...they are not accurate for appraising domain values.

maybe in 10 years, more will value the results from them, but in 10 years from now, maybe the technology will be better too.

so that point is mute for now.

 

[Gerry]

This way, it will be a rational way to start answering your question, with objectivity in mind
Regards

A rational way to answer the question is to come on a forum and personally ask the question of domainers.

He did not join a forum of bee skep owners to ask a question a question about a automated domain appraisal tool.

He got a answer with objectivity in mind considering that a majority of domainers on this forum have been in this arena for considerable amount of years.

It actually is been there, done that.

These tools give you this warm fuzzy, snuggly feeling all over about the domain you fed into the fields to be enticed to plunk down some hard earned jack for a Certified appraisal that ain't worth jack!

Objective, subjective, protective...that is the reality from this side of the fence.

It may be blunt and to the point but it does not change the answer one iota.

 

[katherine]

the question was not whether they are usefull or not, the question was "how accurate are they"

and the answer is ...they are not accurate for appraising domain values.

Yeah... that's the bottom line.
Bots can extract metrics, possibly research comparable sales but not much.
And they definitely fail to deliver realistic price estimates.
Even the metrics don't mean much. The metrics can tell whether the name has got 'potential' but most of the time the name is still worthless undeveloped. It does not mean the name has the potential to sell either.

 

[hakita]

The same as real property appraisals, they're worthless. in the real estate industry we use a word, a particular word. It's an opinion of value versus an estimation. A computer or software can estimate but it cannot give an opinion. There are too many factors to arrive at a fair opinion of value. Software cannot see everything. Do not rely on any automated program for your house or domain property.

Hi acronym007

I agree with you on the fact that you can not base a selling price only based on an script result. What ever the result can be accurate compared to market price, it will always have to be talked with domain expert.
Domain appraisal tool are not made to replace experts.

Let me give you a concrete example of how a wise use can be :

Let's say you a snapnames addict, always searching for good opportunities.

Snapnames among other, gives you every day huge list of expiring domain.
Example: https://www.snapnames.com/file_dl.sn?file=snpexpingexclusive1list.zip

There is juste too many domain to go on a forum a say, "please, appraise those 50 000 domains for me"
At that point, you need scripts.

An appraisal tool can help you find the 20 good domains out of 50 000 within seconds.

Now, you made a selection, the good method is to ask expert for a review, that will takes into account all parameter a script just can't handle.

There is other way a domain appraisal tool can help.

Example 2.
You are thinking about a business about delivering flower, and, of course, all best domain are already taken.
A appraisal tool can help to provide domain list and sort then by potential value (based on limited factor, of course).

That will make the job easier.

 

[stewie]

I wouldn't put any value in any appraisal done by an automated domain appraisals.

:yo:

 

[hakita]

and the answer is ...they are not accurate for appraising domain values.

Sure, but when people say that appraisal tools are "Totally worthless", there is a need to show that it can help to talk about accuraty.

The only way i know to get a accuratey metric would be to compare this last year of domain sell history with all domain appraising tool. That particular study would perfectly answer the question of accuraty.
Anyont know where is it possile to dowload such a list ?

...but most of the time the name is still worthless undeveloped. It does not mean the name has the potential to sell either.

Sure Sdsinc, but as long as their will be people who will agree to pay big $ for undeveloped premium domain, it does means those name are not worthless.

... The metrics can tell whether the name has got 'potential' ...

On another forum you offers the constructive idea that domain appraisal tool should provide 'unit' instead of '$' appraisal.
The more i think about your idea, the better i think it is...
Maybe if i replace the '$' with another symbol, people would less think about domain appraisal as a final market price...

 

[kengreenwood]

IMHO - I don't think these auto "appraisal" tools are completely useless. BUT - they really shouldn't be used for appraisals. Many of them give you some useful information that you could also find with other tools like pagerank, backlinks, age, etc, etc, etc... but the algorithms they're using to calculate a value for the domain are completely unreliable. So, if you're using the tools to get the detailed info on a domain and ignore the $ value suggested, then there is some value in the tool (not much... but some). Having a solid background in the domain name business and a non-mushy noggin will allow you to calc a domains value far better than any of these auto-appraisers.

 

[JuniperPark]

Give me a list of GENERIC domains from namebio, and let's compare.
This way, it will be a rational way to start answering your question, with objectivity in mind
Regards

A while back I caught namebio posting fake sales data and incorrect data from sales transactions that were MINE.

I emailed them corrections and updates. They did not reply and they did not correct their information.

NameBio should be considered absolutely worthless and possibly a scam by domainers.

 

[dominator]

these examples don't prove anything, except to give you more opportunity to promote the use of your website.

it is even possible that the tool contains data imported from namebio or similar sources

 

[Mind]

@hakita

As somebody who develop automated appraisal software I agree with you.
Automated appraisal is an "estimate" based on historical data and some model.
I do not want to comment on the currently offered services (estibot, etc.). There are different methodologies and good estimation based on quantitative model can help in a lot of situations. For example appraising entire drop list in seconds, ranking domains in it by some criterion and making decisions in order to reduce the list to 20-50 domains. Edit: some bold font removed.

 

[katherine]

One problem with appraisal bots is that they operate under a 'blackbox model'.
You don't know which algorithms are used, you just have to 'trust' them.

I think that the creators should put their money where their mouth is, if they find these tools to be useful indeed, then they should purchase and sell domains based upon the computed estimates. If not, then admit these tools are best for entertainment purposes.

 

[Mind]

One problem with appraisal bots is that they operate under a 'blackbox model'.
You don't know which algorithms are used, you just have to 'trust' them.

Sure, black box model do not create trust. But do appraisal services that appraise by "human expert domainers" offer "glass box" of appraisal methodology? I suspect that most of them use some tools before human intervention if any.

 

[kengreenwood]

For example appraising entire drop list in seconds

Sure - you go ahead and use this tool to run an appraisal on an entire drop list... and by doing that you'll certainly be left with a very trimmed down list to work with.

And you'll also filter off aol.com, dnforum.com, etc...

What would you prefer to do - do a little more legwork or save some time and completely miss quality domains?

 

[JuniperPark]

Sure - you go ahead and use this tool to run an appraisal on an entire drop list... and by doing that you'll certainly be left with a very trimmed down list to work with.

And you'll also filter off aol.com, dnforum.com, etc...

What would you prefer to do - do a little more legwork or save some time and completely miss quality domains?

Eh, let 'em go.

But it's posts like his that tell me why I'm still able to hand-reg domains that I'm then able to sell for $1000 or more... these guys are just using those lists.

Carry on, please!

 

[kengreenwood]

I'm thinking your missing my point entirely Juniper. I'm not an advocate of this tool at all. Re-read my post.

I need to stop being so sarcastic - people are interpreting my point exactly opposite of what I'm intending due to the sarcasm.

 

[JuniperPark]

I'm thinking your missing my point entirely Juniper. I'm not an advocate of this tool at all. Re-read my post.

I need to stop being so sarcastic - people are interpreting my point exactly opposite of what I'm intending due to the sarcasm.

I know. My post was sarcastic.

 

[kengreenwood]

Well two sarcastic posts strung back to back turn into ... hmmm... something not good and somewhat confusing that's for sure.

 

[katherine]

Sure, black box model do not create trust. But do appraisal services that appraise by "human expert domainers" offer "glass box" of appraisal methodology?

That much is true, but either way you are trusting the other party to deliver a realistic price estimate.
Paid appraisals are equally useless most of the time. They are too often way off the mark and they will tell you want you want to hear.

 

[didiert]

From my experience, appraisals are a waste of money...