Granted, it is not bad information, however, if EVERYONE rushes to namejet and signs up, the only people that really benefit are namejet 😉 The increase in competition means there are more bidders in the pool which will likely increase bid amounts (because the newcomers will not be able to ascertain a “true value” as much as a “pro” flipper would). The result is a lower profit margin as the method becomes saturated.
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If the third party in question does not have the trademark rights they claim, or it is not a very strong claim. In most cases, the third party will need their trademark registered with the US Patent and Trademark Office (USPTO). The USPTO website has a trademark search engine that you can consult. This may also require a cybersquatting attorney to help determine if the trademark claim is strong enough.
Since search engines regard inbound links as recommendations, these links have a decisive influence on the ranking. The search engine definitely doesn’t appreciate link networks and won’t give new projects a jumpstart by allowing a former website’s backlink profile to be used when registering a new domain. Using an expired domain is like playing with fire, where the worst case scenario is that you’ll be penalized or be excluded from the search index.
So how do you develop that instinct? NameBio maintains a database of over 500,000 historical domain sales (as of writing this post). They have interesting filtering features by which you can narrow down domains by price range, date sold, keywords and more. Simply sifting through the listings on NameBio long enough will quickly develop your domain appraisal “instinct”.
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