Start with name quality
Look for clarity, extension quality, commercial relevance, natural language, buyer depth and a plausible reason a business would prefer the domain over an ordinary alternative.
Then look at basis
The purchase price controls your margin of safety. A name with $25,000 retail potential may be attractive at $1,500 and unattractive at $18,000. Your cost basis is one of the few variables you control completely.
Renewals are capital allocation
Every renewal is a fresh buy decision. Portfolio owners often lose more money through years of weak renewals than through one bad acquisition. Rank names, identify concentration and make low-conviction domains justify another year.
Build value is separate from resale value
Some domains are mediocre investor assets but excellent operating assets. A clear geo-service name or exact commercial phrase can create lead-generation value even with limited investor liquidity.
Know the exit you are underwriting
Wholesale exits are faster and lower. End-user retail exits can be much higher but require patience. Outbound can create conversations but does not manufacture buyer demand. Price according to the exit you actually intend to pursue.