Someone offered to buy my domain. Is the offer fair, and how do I respond?

Judge the offer against the domain's retail value, not against what you paid. Most unsolicited offers come from resellers at 10% to 30% of retail, which is normal and not an insult; an end user who needs the name pays retail. Get an independent appraisal before you answer, counter from the range rather than from the offer, and never agree to buy a specific appraisal or use the buyer's escrow service to "prove" the value.

Short answer: an offer is fair when it sits where you would expect for the kind of buyer making it. Resellers pay a fraction of retail, end users pay retail. The only way to know which fraction you are looking at is to know the retail range, and the only way to know that is an independent appraisal, not the buyer's opinion and not your memory of what you paid.

Here is how to judge the offer, how to answer it, and the three scams that follow real offers around.

Where real sales land relative to retail value

We tested our engine against ten years of the biggest reported domain sales, 1,217 of them, appraising each domain five times and comparing the consensus range with the price actually paid, adjusted for inflation and market growth. The spread tells you what "fair" looks like in practice:

42.7%
closed in the wholesale zone, between 20% of our low and the low itself
12.5%
closed inside the retail range
34.5%
closed above the range, 15% at more than double the high

Even among the most famous sales on record, more than half transacted below the retail range. A wholesale offer at a quarter of your appraisal is the market working as designed. An offer inside or above the range is the end user showing up, and that happened in 47% of these sales. The full study is on our blog: Do domain sales actually match appraisals?

Judge the offer in three steps

  1. Get the retail range before you reply. A $19.99 consensus report gives you the range, the strengths and weaknesses, and comparable sales. Do this before the first reply, because the first reply sets the frame for everything after.
  2. Work out who is asking. Search the buyer's email domain and name. A company in the same industry as the name, a founder, or an agency buying for a client is an end user. A generic address, a "we buy domains" signature, or an offer across several of your names at once is a reseller. Resellers are legitimate buyers; they just pay wholesale.
  3. Place the offer on the range. Under 20% of the low is a lowball from either kind of buyer. 20% to 100% of the low is a normal wholesale offer. Inside the range is a fair end-user offer. Above the range means the name is worth more to them than to the market, and you should still counter once.

How to respond

Counter from the appraisal, not from the offer. "Thanks for the offer. Independent appraisal puts the name at $18,000 to $26,000; I would sell at $22,000." That moves the conversation to the range and gives the buyer something to react to. Countering at double their number anchors to their number instead.

Offer a payment plan if the gap is cash, not value. End users often have the budget over a year but not this month. Lease-to-own, where the buyer pays monthly and takes ownership at the end, closes deals that a lump sum would not.

Set a deadline and keep it short. "This price holds for 14 days." It stops the offer drifting for months and tells the buyer you are a serious seller, not a hopeful one.

Move the deal to escrow or a marketplace the moment you agree. Funds are held until the domain is in the buyer's account; the buyer confirms receipt; you are paid. Both sides are protected and nobody has to trust anybody.

The scams that follow real offers

A real buyer's incentives are simple: they want the name, and they want to pay as little as possible. Any step that asks you to pay anyone before you are paid is not part of a real purchase.

Common questions

The buyer asked me to get an appraisal from a specific website before they will pay. Is that normal?

No. That is the most common domain scam. The "buyer" earns a commission on the appraisal you are told to buy and disappears afterwards. A real buyer either accepts your price or makes their own offer; they never require you to buy a particular certificate. Any appraisal you get should be your choice, for your own information.

Should I name a price first?

Only if you have a number you are happy to sell at. Otherwise ask the buyer for their budget. If you do name a price, anchor to the top of the retail range and leave room to move; the first figure you say becomes the ceiling of the negotiation.

How quickly should I reply?

Within a day. Genuine end users are usually solving a naming problem on a deadline and move to their second choice if you go quiet. Reply promptly even if your answer is "not at this price".

The offer is well below the appraisal. Should I refuse?

Ask what the buyer plans to do with the name. A domain investor will not pay retail and should not; a company launching under the name can. If the buyer is an end user, counter from the range. If they are a reseller, decide whether a quick certain sale is worth more to you than waiting for the retail buyer who may never come.

How do I get paid safely?

Use a licensed escrow service such as Escrow.com, or sell through a marketplace that holds the funds until the transfer is confirmed. Never transfer the domain on a promise of payment, never accept an overpayment with a refund of the difference, and never use an escrow site the buyer names that you have not heard of.

Related questions

Know the range before you reply

A $19.99 consensus report gives you the retail range and the comparable sales behind it, in under a minute, with no account. Reply to the buyer from a position of knowledge.

Check the offer against an appraisal, $19.99

We use cookies to enhance your experience and analyze our website traffic. Learn more