A lot of domain investors facilitate domain sales basing their approach on how the real estate market operates.<\/p>\n
While there are similarities in this analogy, there are also differences which make the use of real estate an imperfect example to demonstrate how the domain market works.<\/p>\n
For example, realtors are licensed professionals that abide to a code of ethics. The domain brokerage or self-brokered market requires no such certification.<\/p>\n
Comp sales in the real estate market more or less define a home’s value, but with domains, the figures can be all over the place, depending on the ability of the seller to facilitate a sale.<\/p>\n
But whether there are similarities or differences between the two markets, one thing is certain: making a sale requires both sides to agree on the price, and both sides need to be educated on the subject.<\/p>\n
When the buyer lacks education on how domains are priced, things can get tense pretty quickly.<\/p>\n
A recent inquiry for an investment domain by a real estate professional, gave me the opportunity to engage with them on the subject of pricing. Their offer was a paltry $25 dollars on a domain suited for a multi-billion dollar market in luxury real estate. My quote was in the mid five figures, and the NYC based realtor quickly started questioning my valuation.<\/p>\n
It’s easy to ignore such inquiries that hit a wall early on, but in this case I put myself in their shoes. What if a house were listed for a million dollars and the realtor was bombarded by offers in the five figure range? Would that be a price to consider, or even respond to? Would it be ignored, or be treated as a “joke” of an offer?<\/p>\n
As I expected, the realtor became very defensive instantly and instead of acknowledging that I had shifted the paradigm into their own domain of expertise, they came back with gloved insults. I informed them that they lack professionalism, and let them know they had just blown any chance of getting this domain from me.<\/p>\n
Why would a realtor react in a manner inconsistent with the code of ethics they are trained in? There is no explanation other than ignorance leading them there, to an unknown terrain of investment opportunities – the domain aftermarket.<\/p>\n
The bottom line is, that using the similarities between domain names and real estate can be a useful approach when the two markets cross each other. I’m certain that there are many educated realtors out there that honor their code of ethics regardless of their field of expertise. In this case, the realtor’s ego blinded their ability to accept the facts and figures that the domain market operates on.<\/p>\n
There are no comps for human behavior, unfortunately.<\/p>\n","protected":false},"excerpt":{"rendered":"
A lot of domain investors facilitate domain sales basing their approach on how the real estate market operates. While there are similarities in this analogy, there are also differences which make the use of real estate an imperfect example to demonstrate how the domain market works. For example, realtors are licensed professionals that abide to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[269,1189,80,1422],"class_list":["post-5847","post","type-post","status-publish","format-standard","hentry","category-domains","tag-domainers","tag-domains","tag-real-estate","tag-realtors","entry"],"yoast_head":"\n