A domain name appraisal is a valuation assessment of a domain name. Many banks use domain name appraisals and accept the methods used to compute the value. To them it secures the value as real and they will let you use it as colatteral at the bank.

The analogy to real estate is what is most often used to explain how it works. There is more to it but simply put a "<keyword> dot com" name is much higher in value than other names. They are considered the prime property along the internet expressways. Other names, extensions and names with hyphens or numbers are the back roads.

Internet automated appraisals are somewhat sketchy. They use their own processes to assertain value. Using data such as domain length, extension, word count and other characteristics of the domain name and Internet data such as a domain's search popularity or type-in rank. They put the name in the ballpark of its value. We analyze that information and combine it with our research into the market to come up with the market price.