What Is AVM (Automated valuation)? Domain Glossary

Why it matters

An automated valuation gives a fast first number. It works best for ordinary names and can miss real brand value. The tool does not know who needs the name, or what a business will gain from it. Results from different tools can vary widely. Use them to spot a rough range, not to set a final price. A common mistake is quoting an automated value to a buyer as if it were an appraisal. Buyers often ignore these numbers. Better evidence comes from comparable sales and from the use case for the name.

Source: sullysblog.com

Where we use this term

LLL, NNN, and 4-Letter Domains: How Short Domains Are Valued

Related terms

EstiBot: EstiBot is an automated domain appraisal tool that gives an estimated value for a domain name. Investors and buyers use it as a quick first check, not as a final price.
Domain appraisal: A domain appraisal is an estimate of what a domain is worth. It may come from an automated tool, using sales data and name features, or from a human expert who weighs buyer demand.
Comparable sales (comps): Comparable sales, or comps, are recorded sales of similar domains. Investors and brokers use them to estimate what a name should fetch, as a real estate agent uses nearby home sales.
Wholesale value: The price an investor or reseller would pay for a domain to resell it later. It is usually well below the price an end user would pay for the same name.
End-user value: End-user value is what a domain is worth to a business that will use it, not to an investor who will resell it. It is also called retail value and is usually higher than wholesale.

All 205 terms

Automated valuation (AVM)

Why it matters

Where we use this term

Buying or selling a domain?