Why are domains so overpriced?

I needed a domain name and looked at Sedo. Seems like people are completely out of touch with pricing domain names. Here's a few examples.

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[TD="class: domainField jqs_tbl_domain"][TABLE="class: tableBlue"]
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[TD="class: domainField jqs_tbl_domain"]z2agifts.com 10,000 USD
makethemagift.com 10,000 USD
com-1000-giftcard-survey.info 9,999 EUR
creditcardwarehouseonline.com 98,000 USD

Almost every single domain for sale is either really bad or very overpriced.[/TD]
[TD="class: priceField jqs_tbl_price, align: right"][/TD]
[TD="class: bidsField jqs_tbl_bids, align: right"][/TD]
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[TD="class: priceField jqs_tbl_price, align: right"][/TD]
[TD="class: bidsField jqs_tbl_bids, align: right"][/TD]
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Some of the domains on sedo are brandable and exact match domain.

IMHO, I would avoid it unless you really need the domain or if you can have a huge ROI on that domain.

I agree people are nuts. If you want to win the lottery go buy a ticket.. There are some good, but expensive domains out there. Supply in demand, theres only one. I browse domain auctions a lot, I think most sales are just fake. No way someone pay five figures for a 2567dfetgf domain, seriously.. I've picked up a few good ones using dropped domain tools. Name generators work sometimes, not for an exact domain, however it generally sparks some alternatives you might not have thought of..

Don't look at Sedo...

Just hand register a domain name.

I use this site sometimes to help me find names, just put the names into groups by finding large word lists.

http://www.bustaname.com/

Or you can go here and find recently expired names, I have found some amazing domains doing this and hand registered them.

http://www.expireddomains.net/

Finally, this site is decent at helping as well.

http://www.leandomainsearch.com/

Surely you will be able to find a good name using these methods.

Domain brokers are always insanely overpriced, it's ridiculous :l

I thought you were a newbie ranting about domains being a MASSIVE $9.99 year.. Was raging already

Well, those sellers list tons of domains at ridiculous prices hoping that they will hit jackpot with one sale.

I would advise buyers to use a site like http://www.namestall.com/ to search for available domains containing your keywords or brand names instead of buying overpriced domains at auctions.

they buy 1000ends of domains and they have to make a jackpot from time to time to cover the costs.

Overpriced or not is an opinion. Some domains are more expensive because they seller think they have some kind of value but to me unless it is a one to two word brand-able domains, I will not spend money to buy them

As a domain seller most of the time they do it for shits and giggles. Meaning they know it wont sell BUT what it does to is bring some eyeballs to that domain and then they may check out what other domains they have that are priced correctly. Think of it as another way of marketing. There have been some "scratch your head sales" so sometimes as well newbies will outprice themselves right out of a sale.

Yeah, those sellers are nuts! I guess they must sell one once in a while though, or why would they keep spending the time?

I usually do fine with expired names. Have found some gems on domaintools.

I suppose if I got hired by a company named com1000giftcardsurvey and they needed the domain to expand their brick and mortar presence that would be a different story hahaha!

Domainers work by selling domains at large multiples of their actual value, since it's so rare that they actually sell a domain name to an enduser. Also, they're expecting to haggle, so they start high. In general, stick to auctions when if you want to buy a preowned domain name.

On Flippa, you can also get over price if you are a seller of domain name but you have to write long description and you have to use feature listing.