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Sedo Auctions: How Bidding and Expiring Domains Work

How Sedo auctions work: the auction types, the 7-day period, hidden reserves, proxy bids, late-bid extensions and what happens after you win.

7 min read

Sedo auctions run for seven days, most are started by the domain's owner rather than by a registrar, and a bid you place is binding for the whole auction. When the auction ends with the reserve met, a purchase agreement exists between the highest bidder and the seller. Sedo also auctions names that are about to expire, which is the part most expired-domain buyers come for.

Everything below comes from Sedo's own terms and help pages as they read at the time of writing. Terms change, so read the documents named here on sedo.com before a bid that matters.

The types of Sedo auctions

Sedo is a marketplace first: owners list names, and an auction is one of the ways a listing can end. Sedo's Domain Marketplace Terms and Conditions, published under the policies on sedo.com, describe three routes, and its Expiring Domains section adds a fourth.

Type Who starts it Reserve at the start
Offer pushed to auction The seller, after receiving an offer Already met
Sedo direct auction The seller, before any offer, for a fee Not yet met
Managed auction event Sedo, from names sellers submit Depends on the event
Expiring-domain auction Listed in the Expiring Domains section Check the listing

The first route is the one buyers trip over. You make an offer on a listed name; instead of accepting or countering, the seller sends the name to auction with your offer as the opening bid. The auction runs until seven days after that bid, and if nobody bids higher, your offer is accepted automatically. An offer on Sedo can become a winning bid without another step from you.

In a Sedo direct auction the seller opens the auction before any offer and sets a reserve, so bidding starts below it. For managed events, Sedo picks the names and sets each end time.

For where Sedo sits next to registrar auctions and drop-catchers, see the comparison of domain auction sites.

Sedo expired domains: the expiring auctions

Sedo's Expiring Domains section lists names that are close to expiring and puts each in a seven-day auction. According to Sedo's page, you can bid at any point in those seven days, place a proxy bid, and save a search with your own filters, incoming traffic among them.

The page does not say which registrars the names come from, whether the previous owner can still renew after the auction, or what the expiry date will be once the name is yours. At registrar auctions such as GoDaddy's or Dynadot's, a win can be cancelled when the old owner renews. Do not assume the Sedo rule either way: read the terms on the listing and ask Sedo before a large bid.

The Sedo feed is one of the sources hunter.domains scans every day, so names from it that pass the authority, blacklist and archive-history filters appear in the live list of expired domains with a score and risk flags.

The reserve price and what "Reserve met" means

The reserve is the lowest price at which the seller agrees to sell at auction. Three rules from Sedo's terms matter to a bidder:

  • The exact reserve is not disclosed to bidders.
  • The seller may lower the reserve during the auction, but may not raise it.
  • An auction only ends in a sale if the winning bid reaches the reserve.

In an auction that began from an offer, the reserve is met from the start, because the offer served as both starting bid and reserve. In a direct auction it starts unmet. Bids below it are accepted and displayed, but if the reserve is never reached, the auction closes without a sale.

How proxy bidding works on a Sedo domain auction

You enter the highest amount you are willing to pay, and Sedo bids for you in increments up to it. Sedo's help page gives the rules:

  1. Your maximum stays confidential.
  2. If you win, you pay the lowest winning amount, which may be below your maximum.
  3. If two bidders set the same maximum, the one who placed the proxy bid first holds the highest bid.
  4. Incremental bidding only starts once the reserve has been met.

Say the current bid is 200 and you set a maximum of 500. If one other bidder goes up to 320 and stops, you win at one increment above 320, not at 500. The bidding strategy guide explains how to arrive at a maximum you will not regret.

The last five minutes

Waiting until the final seconds does not work on Sedo. Under the terms, the auction is extended by ten minutes each time a valid bid arrives within the last five minutes. A contested auction can therefore run past its listed end. Be available then, or let a proxy bid do the work.

A bid is binding

Sedo's terms bind a bidder to an offer for the length of the auction period. At the end, a purchase agreement is concluded between the seller and the highest bidder, provided the winning bid meets the reserve.

Failing to complete a won auction is treated as a material breach: the other party can claim damages or performance, and Sedo reserves the right to collect its commission from the side that refused to cooperate.

Sedo auction closed: payment, transfer and fees

Once the reserve is met and the auction closes, Sedo's transfer service takes over. The Domain Transfer Service Terms and Conditions, on the same policies page, set out the sequence:

  1. Sedo sends payment instructions and the buyer is expected to pay promptly.
  2. Sedo instructs both sides on moving the domain.
  3. Sedo starts paying the seller only after a successful transfer, meaning the seller no longer controls the domain.
  4. The buyer is asked to confirm control. If the buyer does not answer Sedo's requests within five days, the transfer can be treated as successful anyway.

If you do not follow the instructions in time, Sedo may open a registrant account in your name and place the domain there.

On Sedo auction fees: the commission on a sale is charged to the seller, and the transfer service is free to buyer and seller for marketplace sales. A direct auction carries its own fee for the seller. The amounts are in Sedo's price list, so read the current figures there.

What to check before you bid

Sedo runs the auction; it does not vet the domain's past. Before a binding bid:

  • History. Archived versions across the years: spam, a topic change, a long empty stretch.
  • Links. Who links, and with what anchor text.
  • Blacklists. Spamhaus DBL and SURBL.
  • Registration status. A WHOIS lookup shows the expiry date and status codes.
  • Trademarks. A brand name inside the domain brings UDRP risk.

The domain checker puts these into one report for any name you enter, and the 12-point checklist covers the rest.

Frequently asked questions

How long do Sedo auctions last?

Sedo's help center says all auctions run for seven days from activation. A bid in the last five minutes extends the auction by ten minutes each time, so the real end can be later than the listed one.

Can I retract a bid on Sedo?

No. Under Sedo's marketplace terms a bidder is bound to the offer for the length of the auction, and a purchase agreement forms with the highest bidder when it ends with the reserve met. Sedo itself may remove bids it considers erroneous or fraudulent.

What does Reserve met mean on Sedo?

It means the bidding has reached the seller's hidden minimum price, so the auction will end in a sale. Auctions that started from an offer have it met from the beginning. Direct auctions start unmet and end without a sale if it is never reached.

Who pays the fees in a Sedo auction?

Sedo charges its sales commission to the seller, and its terms describe the transfer service as free to buyers and sellers for marketplace sales. A seller who opens a direct auction pays a separate fee. Check Sedo's current price list for the amounts.

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