Saw Video – Comparable Sales

Saw Video – Comparable Sales

Watch CEO and co-founder Jeff Gabriel discuss domain appraisals in a new Saw.com video! He explains how we can use past comparable sales to inform a domain’s appraisal.

Transcript

One of the most absolute most important parts of the appraisal process is looking at comparable past sales that have happened in the market within a reasonable amount of time of the sale taking place. So, looking at sales that happened in 2003 usually isn’t very relevant.

One of the things that you have to think about is that you can’t just take the term that your domain name or anyone’s domain name falls into for that matter, and search that term. And then [assume that] anything that that term falls into is now a legitimate comparable sale.  That is not the case, so I’ll give you an example. If I was selling homeowners insurance or homeinsurance.com or healthinsurance.com, finding bestinsurance.com that sold for eight hundred dollars is not a comparable sale to any of the three or any of the two domains that I just mentioned. Each of those domains that I mentioned is category-defining domains and should be compared to other domains that lead their industries.

Here’s an easier example for me to talk to you about; Pizza.com. Pizza is something that everybody loves to eat. When you say the word “pizza,” a lot of people smile and say, “When are we gonna get it?” Okay, but if you say Jimmy’s pizza, that is not a relevant comparable sale.  If that sold for say five thousand dollars, that is not a relevant comparable sale to the term Pizza.com, which sold a few years ago for a few million dollars.  Not comparable.

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