I placed a backorder through GoDaddy for $18.95 thinking that was all I needed to do. During the week that followed, I learned a lot about the domain expiration process. Two and a half months and $369 later, I am the proud owner of a shiny new domain. A really really good one.
How a domain expires
Contrary to popular belief, domains do not expire when they say they do. If the owner of a domain does not renew by the expiration date of the domain, the domain goes into "expired" status. For 40 days, the domain is in a grace period where all services are shut off, but the domain owner may still renew the domain for a standard renewal fee. If a domain enters this period, it is a good first indicator that it may not be renewed, but since the owner can re-register without penalty, it can also just be a sign of laziness or procrastination.
The entire process ends exactly 75 days after the listed expiration date.