Just because someone spent five or six figure amount on a domain name doesn’t automatically imply that he/she’ll spend the same or at least a few thousand dollars on a similar name too. Basing your domain flipping strategy entirely on what others have just bought may not be as useful as you may think. Every domain name has a story behind it and its purchase/sale is usually as unique as that story.
This is similar to house flipping, where a home is purchased and fixed up in order to sell for a fast profit. Unlike house flipping, however, there is essentially nothing to be done with the domain name in order to increase its value. Therefore, the key to a successful domain flip is being in the right place at the right time in order to acquire a valuable domain name before it is given a higher price.
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.
2) prerelease auctions. These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains. Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name. Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site. So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"
Thousands of domain names expire every day. The reasons are different. Some owners forgot to renew the domains, some just don't want them anymore or they moved on to other projects. For most people these so called Expired Domains don't have any value. They just see a bunch of Domain Names someone else deleted and move on, but for the people who know about SEO or the value of good Backlinks, Expired Domain Names are money just waiting to get picked up from the street. The only problem is to separate the good ones from the bad ones. That is where ExpiredDomains.net comes into play.
They see a domain’s price tag and they can instantly tell whether it’s under or overvalued. This is probably the most important skill one should have in this industry. Neil Patel has an interesting related quote: “The most important thing to remember when buying sites is that you always make money on the buy, never the sell.” In order to successfully do this, you must be able to spot undervalued domains. This is what will ultimately translate for you into a handsome profit margin when you get the opportunity to resell the domain for its “real value”.