Domain evaluation

[bettingmalta]

hello all, simple question: how to evaluate a top domain in a specific niche?
this is a parked domain, no traffic and never went live, at the moment there is a simple redirect to another similar domain (owned by the same person ofc).
I want to buy it, they want to sell...but how to do an evaluation in this case? the domain is one-word domain (probably one of those not extincted yet ) but don't want to be in a numbers shoooting race...I would like to negotiate on a fair base, any suggestion?

[ddm]

I evaluate based on:
Ranking potential with specific budget, (one word, 2 words, 2 words 1 hypen, .com over .net.)
EMD Benefits? - Domain name specific benefits that might save me $ (eg google does like those EMDs, so one can spend a little less $ to achieve specific root rankings),
Geo Benefits: If I want to rank in canada, I might pay a little extra for a .ca CCTLD
Brand benefits: is it possible that one day this might be a brand domain?

Extra stuff:
- Some old solid backlinks ? (do homework with ahrefs, semrush, majestic etc)
- High domain metrics? (can potentially do some tactical link/content swaps/sales to lower marketing costs)

also

HOW MUCH IS THE DOMAIN WORTH TO MY COMPETITORS, and WHY? <- This is the big Q.

How much did similar domains sell for on sedo,godaddy etc?

[Christiaan]

It is a difficult case. If the domain never had any content or links it is not worth so much. Only if you really want to make this your brand name you should go for it. Otherwise, consider if it is worth the money. A new domain is less than $10.

If you do want to spend the extra money to make this your brand, the evaluation of ddm is very good.

[ddm]

OP said it was a "top domain" in a specific niche.. sounds pricey to me based on just this assertion..

"potential traffic" is a key metric you should consider.. OP .
ie if you rank number 1 for domainkeyword, what's it worth in traffic, and what is it worth in terms of revenue based on a 5% to 40% conversion rate ? so many questions =)

[bettingmalta]

thank u for the feedback,
I add this just as for example: a project to be used in the forex niche, a domain like investment.co.uk --> this means top level domain highly related with the niche, with country code specific .co.uk (KW would work in that country only due to language translation). Again this is just an example to explain a bit better the case.
I personally think that the domain itself, even if never used for creating content, could be potentially a main driver for the entire project.
The main question will remain, how to evaluate it - I would like to find a fair evaluation for both parties but this quite complicated for me to figure it out.
Any other extra suggestion? Appreciated

[ddm]

oh yes,

what terms would I bid on to get the traffic via PPC (that I might win organically with this domain) and how much do those clicks cost?
High CPC ? .
work out how much the estimated monthly organic traffic would cost via PPC, that would shine more light on the potential value