Expired domains are domains that have been registered by individuals, businesses, or organizations, but aren’t renewed after the contract ends, or are deliberately terminated. That means that they available for re-registration. There are many reasons why someone would choose to abandon a domain; one reason could be that the web project failed, or that a domain portfolio went into liquidization. Domains can also end up becoming free due to the owner receiving warnings for possible trademark infringement. Re-registering can also result in legal consequences.

Also, Sedo.com, makes millions a week selling domains,even in the past week[3]! If you want to sell here, I would probably use a paid category or featured listings, one of my category listings, got 44 views in just 1 week but still waiting for a sale this month, hopefully. I would not really on this as a business, unless you add web development to it, and also, be sure to check that you are making a good profit, say within 6 months!
This wonderful piece of information about buying expired domains is simply mind-blowing and I did not know about that before. It is easy for every one to understand about the topic with the pictorial representation. I feel sad that you lost around $400 due to Fake PR, but this article will surely help others save them from any sort of inconvenience.
There’s an important distinction to make here between domain flipping and website flipping. The latter mainly refers to buying and selling full websites. By full websites, I mean websites that actually have content and more often than not have traffic and revenue. When buying and selling websites, the domain name matters less as the main value there is the content, traffic, revenue, history/reputation, sustainability and growth opportunities. The same can’t be said for domain names where you’re just selling “the name” and hence it’s all that really matters.