"Appraisal" and "valuation" are used almost interchangeably in the domain world, and most of the time it doesn't matter. But when you're paying for a service or relying on a number for a negotiation, the distinction is worth knowing.
Valuation: the number
A valuation is the act of estimating what a domain is worth. It produces a number — usually a range — and the reasoning behind it. A valuation is analytical: it compares your domain to market evidence and arrives at a defensible estimate.
You can get a valuation from a spreadsheet, a broker, or an AI tool. The output is the same shape: a range and a confidence level.
Appraisal: the document
An appraisal is the formal report that presents a valuation. Think of it like a property surveyor's report: it contains the valuation, but also the comparables used, the scoring of each factor, the risk flags, and a written narrative a buyer, seller, or lawyer could rely on.
In practice, "appraisal" often implies a more thorough, documented treatment, while "valuation" can be a quick headline number.
Which do you need?
- Just want a rough number? A valuation (or a quick AI estimate) is enough.
- Selling, buying, or negotiating? You want an appraisal — the documented reasoning gives you something to point to and something to negotiate against.
- For legal, tax, or shareholder purposes? A formal, documented appraisal is usually expected.
The DomainAi approach
DomainAi produces an appraisal: a full broker-grade report with the valuation range, comparable sales, scored factors, risk flags, and a written investment thesis — not just a headline number.