Advice needed! Domain that just sold for low $xxx - Just received email offer for $5,000

[Maxwell]

I just recently sold a domain at GoDaddy auctions for low $xxx. It was accidentally listed with no reserve.

Then today I just received an offer from someone for $5,000. I did a reverse whois on the email and their portfolio is worth well over $200k. Many NNN.com's and NNNN.com's.

So of course I'm going to try to cancel this transaction at all cost, but how do I do this? GoDaddy is not just going to let me do it.

The transaction is not entirely completed yet, the domain has been removed from my account, but I have not received the funds yet.

Please give me your thoughts on how I should handle this situation...

UPDATE: Transaction is completed. The 5k offer is legitimate; but new owner isn't responding to emails. I'm moving on.

 

[ivoy]

Wow lot's of scheming going here, this is not a sad story, it's a greedy story

Not necessarily; not if it's done the right way. let's say you buy a house from someone for $100,000. Before you even move in, that someone calles you up and tells you that he just got an out of the blue offer for $500,000 and simply wants to know if you are interested in flipping the house and sharing the profit. wouldn't you appreciate the offer?

 

[ibidu]

I haven't read all the posts so if it's mentioned by someone else then just do it:

First find out the real price of the domain from experienced people here to see if the name is really worth anywhere near 5k or not.

Then, contact the buyer and ask him how much commission he would be prepared to pay you if you sold his domain for 5k? He could even offer you anything up to 40%. Doing it any other way would be risky.

 

[lincolndsp]

HallOfShame.com is patiently waiting

 

[Chris Wright]

This sounds EXACTLY like a scam I read about on a famous domainer blog.

 

[Keith]

@lll I didn't say that, I said it was accidentally listed without a reserve.

But even if I can't cancel the transaction, I'm going to offer the new owner for what it sold for +$50 maybe..

I would never do business with you since you said you would try to cancel the initial deal at all costs. The stand up thing to do would be to tell the new buyer that you got a $5k offer. Perhaps you could get a finders fee at best.

You listed, it sold, done deal!!!

 

[Maxwell]

@Keith I thought there might be a chance to get it cancelled since it was listed incorrectly. Since it was not listed properly I didn't really view it as bad business practices or anything to try to cancel it.
This is how I viewed it, but I understand that's your opinion.

 

[The New Guy]

@Keith I thought there might be a chance to get it cancelled since it was listed incorrectly. Since it was not listed properly I didn't really view it as bad business practices or anything to try to cancel it.
This is how I viewed it, but I understand that's your opinion.

But it's your responsibility to make sure it was listed correctly.

How long after you listed it did it sell? If it it was a minute after, there's a window where you could say "sorry, I made a mistake in the listing and didn't catch it until after it went live". If it's hours or days- then it's your fault for not checking out your auction to make sure everything was right.

 

[DnEbook]

But it's your responsibility to make sure it was listed correctly.

How long after you listed it did it sell? If it it was a minute after, there's a window where you could say "sorry, I made a mistake in the listing and didn't catch it until after it went live". If it's hours or days- then it's your fault for not checking out your auction to make sure everything was right.

Not the first post where someone 'Accidently' did something then wanted to change it

 

[johname]

I only made it through the first page, so sorry if I am repeating something.

The key here to me would be, are these the only two offers I ever got on the domain? and I got them that close together. Red flag city for the most part.

The other thing is you are assuming their portfolio value and reflecting it on their making a huge enduser level first offer. Just because their portfolio increased in value does not necessarily mean they are now throwing money around. Usually the opposite. Those that know the game throw the low balls.

Last piece of the puzzle is you seem to gladly value the name at low xxx

Smells, Listen to the cautious advice of others in the thread and think about how much you value using godaddy in the future. Goodluck

 

[Paul]

It's quite likely that no matter how this goes down, you won't get any money, because neither of the two "buyers" are interested in paying you. It doesn't really matter who contacted the other first; the way I see it, you're walking right into a trap.

Not necessarily; not if it's done the right way. let's say you buy a house from someone for $100,000. Before you even move in, that someone calles you up and tells you that he just got an out of the blue offer for $500,000 and simply wants to know if you are interested in flipping the house and sharing the profit. wouldn't you appreciate the offer?

No, I wouldn't. Red flags are all over that one. I'd take the house and run. If it weren't too late, I'd back out entirely.

 

[buyselldoms]

I accidentally listed something on ebay once... forgot the reserve... *gulp*

I pulled the auction 5 minutes later... I didn't wait for the auction to complete in 7 days, or for anyone to get the chance to bid on it (despite the ability to cancel bids later just in case it did rise above what I wanted for it, so I could simply pull out if it didn't).

Everyone who sells something at auction without a reserve for less than what its later worth, feels a bit gutted; but they do not refuse to acknowledge the sale and try to cancel the transaction.

No one can genuinely allow an auction to end then realize you forgot the reserve, this is sore loser talk. The other offer isn't a guaranteed sale so you haven't necessarily lost anything. If you felt it was worth anything near this offer I am sure you would have placed a reserve. Foresight is a wonderful thing, at the time you didn't feel it would make anywhere near that.

The reason why anyone with this mentality decides it was listed "accidentally" as they felt the item (in this case the domain) wasn't worth the money placing a reserve on it!

I have had more experience in auctions than domains (talking proper auctions in addition to online ones like ebay) and it is a big decision... reserve or no reserve... this fall back option is pretty expensive, paying to keep what you already own. Sometimes I have regret putting a reserve on, others I wish I did put a reserve on... the bottom line is knowing the market (granted in domaining is generally more difficult than antiques/collectables etc) and having the confidence. Whether you buy or sale in auctions, some times you win and sometimes you lose. Winning sometimes is losing... i.e. if you overpay or damage the item before you get it home!

 

[buyselldoms]

Not necessarily; not if it's done the right way. let's say you buy a house from someone for $100,000. Before you even move in, that someone calles you up and tells you that he just got an out of the blue offer for $500,000 and simply wants to know if you are interested in flipping the house and sharing the profit. wouldn't you appreciate the offer?

No, I am party C... party A sold house to party B...

I would approach party B with an offer as I really want that house!! (Assuming the transaction went through) I wouldn't contact party A... he doesn't own the house anymore.

Okay, that isn't the so relevant part... but this latter bit is... why would party B who now legally owns that house... want to sell it back to party A to sell to party C to split the difference in profit? Party B is likely to be offered $xxxxx directly and able to choose to keep the entire profit. A no-brainer. Simple logic.

 

[BrandChimp]

Sell a name for xxx$ buy it back for xxxx$ beacause you have an ofer of $ xx,xxx. Whats worng here? Scamalert lol

 

[domainscp]

Not sure if this has been brought up all ready but first off its a obvious scam. Second not sure how the huge portfolio guy approached you but did you email the who is addresses on any of the names he says he apprantley owns? He could be bs'ing about those as well and maybe it needs to be brought to who ever owns those names attention. I highly doubt anyone that has a lot of quality names is going to be pulling this scam.

 

[Maxwell]

Not sure if this has been brought up all ready but first off its a obvious scam. Second not sure how the huge portfolio guy approached you but did you email the who is addresses on any of the names he says he apprantley owns? He could be bs'ing about those as well and maybe it needs to be brought to who ever owns those names attention. I highly doubt anyone that has a lot of quality names is going to be pulling this scam.

He didn't mention any domain names he owned. I found out he had a rich portfolio after reverse whois searching his email.

So yes, I as well doubt someone with this quality of names would be doing this.

 

[Viper Domains]

Since sales are binding at GD, you're going to have to let it go.

I think you're next move is to take that money and find an under priced domain, snatch it up, and wait for that big offer to come again.

People under price all the time. I know I do. Much easier to move domains at re-seller prices.

 

[AEProgram]

Since sales are binding at GD, you're going to have to let it go.

I think you're next move is to take that money and find an under priced domain, snatch it up, and wait for that big offer to come again.

People under price all the time. I know I do. Much easier to move domains at re-seller prices.

checked some of your stuff def very under priced but hey as long as you keep it moving

 

[matrigaldo]

How it ended?
It seems a scam to me. I receive bunch of these kind of emails each month, offering me $x,xxx for low $xxx domains, and they always end up to the "appraisal scam".

However, even if this is different, the approuch looks quite similar.

First at all, i would accept their offer, asking them how they'd like to complete the transaction, and tell them you have a partnership with a friend over this specific domain and have to talk to him, which is just a formality because both are willing to sell this domain, just to see how they proceed. If it is a legit offer, which i doubt, they would talk about escrow.com and similar, without mentioning nothing else, like "use this -unknown- escrow service" or "i need a official TM appraisal in order to proceed and verify the value of the domains" etc, and will give you the time to "talk to your partner".

At this point we wouldn't have told them a lie. Well, maybe technically yes, but you're going to make the original domain buyer as your partner. As read in this thread, be honest with him.
Contact and tell him you've been contacted by a potential buyer as result of a pro-active campaign you've made few weeks ago, and you're willing to share with him the revenue. You can also motivate him stating the amount of his part, which i say 50% to be fair.
Then assuming the offer is $5,000, you tell him if he accepts to close this deal together, his part would be $2,500.

Of course, it's up to you to be honest, and invest these $2,500 from your pocket, because in this case honesty would mean start an escrow with both (rich potential buyer and original buyer) and when you will receive confirmation about the payment from the rich buyer, you have to proceed with the original buyer before to receive $5,000.

Technically this is a $2,500 buy-back , but it helps you to keep your reputation clean and not lose all this money.

BY THE WAY i'm afraid this wouldn't be your case, because i'm quite sure the rich buyer isn't legit. But, who knows.

 

[DnEbook]

New owner would just relist the domain at $5000 ……LOL

 

[forge]

New owner would just relist the domain at $5000 ……LOL

Right, it'd be a ridiculous proposition, and the perfectly legitimate response would be 'tough shish', you sold me the domain, so complete the transaction or face the legal consequences of failing to honor our agreement.

 

[Maxwell]

Just to clear up some things to those interested:

The domain was accidentally listed without a reserve but I didn't view this as a huge mistake (and still don't) because it sold for a fair retail price. It just became frustrating when I received the 5k offer after.

The $5,000 offer is more than likely real. It's super unlikely that this is some sort of scam between buyer and offerer. First of all, the offer was not "out of the blue", it was a response to an email I sent out when I was contacting potential users <-- this is the reason he emailed me and not the new email in the whois, he didn't know it was sold and just replied to my original email.

Second, it seems pretty far-fetched that someone with a $200k+ portfolio would be doing a little scam attempt like this <-- this alone is enough for me to not think it's fake. Also, they emailed me again about how we would be completing the transaction since we live in different countries (not looking for appraisals or anything like that). Also, the new owner hasn't contacted me back looking for a higher price like he would be if this was the scam many people mentioned.
There is just no red flags. It's just super unlucky timing.

Anyway I'm moving on from this. Thanks all the advice and feedback.

 

[buyselldoms]

Good to hear that you are moving on.

Don't want to give you a lecture on life but its more likely for scammers to hold more money than someone legit. There are probably little to any billionnaires in the world who haven't evaded tax. There are probably equally very few millionnaires who haven't screwed someone over, took advantage of someone or bent the rules.

Also please notice the difference between $200k of assets and $200k of potential end-user goods. If this person had to liquidate the domain names to generate cash (say for a tax bill outstanding or divorce) I am pretty confident selling them off at trade price would be significantly lower, as we all know. Not all LLLL.coms are equal, some are near worthless.

 

[Maxwell]

Good to hear that you are moving on.

Also please notice the difference between $200k of assets and $200k of potential end-user goods. If this person had to liquidate the domain names to generate cash (say for a tax bill outstanding or divorce) I am pretty confident selling them off at trade price would be significantly lower, as we all know. Not all LLLL.coms are equal, some are near worthless.

Thanks.

But just FYI his domain's aren't LLLL.com's, they're NNNN.com's which are a whole nother story. Those are worth about $4,500-$5,000 overnight. He has about 30 of those (30*5000 = $150,000). Then he has two NNN.com's which don't sell under $50k these days. So I wasn't referring to potential end user goods, I was referring to just reseller prices.

 

[DnEbook]

Did you sell a NNNN, LLLL or word domain ……just interested

 

[bonavee]

New owner would just relist the domain at $5000 ……LOL

As simple as ABC! Move on buddy. Here's wishing you well.