Could you give me an example of what you would look for in a domain that has been bought in terms of appraisal?
I understand the concept of selling the idea along with the name but what kind of dollar value are you looking at?
Do you take the names live or just hold them offline? Can that affect the price?
Anything else you can think of?
I would like to understand more of what is going on

Oh welcome, you are about to become addicted....to answer some of your questions...

Domaining is the business of buying, selling, developing and monetizing Internet domain names. Such domain name portfolios often include marketable generic dictionary-word domain names, or domains whose registrations had lapsed yet still retain reasonable traffic. There is sometimes no actual intent to use any of the domain names with the exception of generating advertising revenue through domain parking.

Domainers is a slang term for individuals, companies, or organizations whose business model includes accumulating a portfolio of generic internet domain names. Although controversially compared to cybersquatters and ticket scalpers, Domainers claim to differentiate and legitimize themselves by avoiding trademarked names and potentially contentious domain names, and refraining from typosquatting. They consider their conduct in buying, selling, and developing domain names to be in the same spirit as real estate investing. Domainers generate revenue via domain parking, through the resale of domain names and by developing domain names into fully functioning websites.[1] Domainers are also sometimes referred to as domain investors and commercial registrants and bulk registrants.

You can make some big bucks by buying a domain name at reg fee and developing a special website with a unique concept then turning around and selling that site. Price ranges vary but can easily be between $500.00 and $1000.00.

You will get familiar with everything...it just takes a bit of time but it all comes to you after a while and makes sense.

Get out whilst you can!

hehe, I'm joking; domaining is (can be) lots of fun and rewarding. Although I am yet to see those 'rewards'. Thats what makes it fun though, never knowing whats going to happen...

Well said!

When I look at a domain, in appraisal mode, I look for:

Shortness - http://www.isthisagooddomaintobuycauseithinkso.com isnt, but something like http://www.gblog.com is good
Originality - don't make a site when there's 10,000,000,00 out there like it, step out from the norm!
Pronounceability - don't buy something like wkjnd.com, but even if it's a fake word, make sure its pronounceable, like Sinul or Celrus
Content - most people don't do this, but I look at content of a site when I appraise it, if it has a sweet domain, but nothing for content, it drops down 75% in value in my book.

DebacleX, content is of course important when you're trying to sell a website. But domain appraisal is not exactly that.