I just found this article on the flippa blog which I thought may be of interest to page2 readers.
While I agree mainly with what Kenny Goodman says I also think that they didn’t really examine some of the risks and dangers associated with buying aged domains.
In particular it is common practise for domain squatters to simply buy domains and stick up link referral sites – these may get blacklisted by search engines for linkfarming so it’s very important you do some due dilly before you invest in a domain.
Post here
SP
Good point, SC. In addition to knowing whether the domain was a link farm or other spam type of use in the past, it’s useful to know how long ago the domain changed hands. Once I was going to purchase a five letter domain for about \$1,500. It was a great domain, and one that I knew should be worth far more. Then I started to dig into how long ago the domain changed hands and I could see that it was about a month or so ago. I also discovered that this guy tried to sell the domain in the past and it didn’t go through. Both things got me a little worried…what if the domain was snatched up by squatter when it expired without the owner knowing? What if the previous owner was working with his/her attorney to get the domain back. Too many questions and it seemed to be a deal that was a little too good. I passed on the deal too. I think it’s still available today. :)