Couple of questions to get you start thinking:

• would you buy a land in middle of no where?
• would you buy a land in middle of no where but you know there's a protential develoment within next few years?
• how much would you sell a land in middle of no where?
• how much would you sell a land in middle of no where but you know there's a protential develoment within next few years?

Domain name is like real estate, owners pay rough estimated US$10/year/domain with hope that one day it can bring them gold.

After year 2000, people figured out that they don't need dictionary word domain name to make them catchy. Internet companies you heard are jiberish (can't think of a good one... yahoo?), misspelled (flickr), alternative (bhpbilliton.com instead of bhp.com) and domain name hack (del.icio.us).

Now to answer:

• If you are buying domain name from registar, you may need to provide your business details in some countries. However in your case, you try to buy domain name from a reseller, then you may not require to provide them with business information.
• No, you may not leverage with the fact that you are desperate with the domain name.
• If they try to take advantage of you, it's fact of life. You may choose to give in, haggle or do my preference: buy domain name**s** before you register your business.

If you are plan to start a business where people will recognise you by your URL address, then it is almost a rule that you start by searching for available domain names, cross check with existing business names, buy the domain name**s** THEN start registering your business.

If you are making a movie, www.matrixthemovie.com/ is fine or matr.ix/ looks 1337, but www.matrixthebusiness.com/ or matr.ix/ are just plain awful as businesses.

This are my 2 bytes (also known as 16 bits).

If there is no website for the domain, there are four likely scenarios as to why the current owner has the domain:

1. They may have bought it and parked it with the intention of selling it later for a higher price.

2. They may have bought it with the intention of developing it, but never got around to it (I have a few like that).

3. They may have bought it and are actively building a site, but haven't yet launched it.

4. They may be using it for services other than a website (e-mail, ftp, etc).

In scenario 1, you are exactly who they were waiting for. Chances are, they do not have much invested in the domain, so if you offer them $500 for it, they're making a huge margin.

In scenario 2, you can probably get it for a steal. They didn't buy it with the intention to resell it later, so the fact that you are willing to give them a few hundred bucks for it will make their day.

In scenario 3, you are unlikely to get the domain name unless you offer them a lot of money.

In scenario 4, it could be hit or miss. If they're using it as their primary e-mail address, they're not going to want to part with it. But if it's just a seldom-used "vanity" e-mail address, then you may be ok.

To answer your questions:

• I would not get an official appraisal before starting the negotiations - especially since you already have an idea of what it's worth. If you can't come to an agreement, then maybe look at that option.

• I would not mention that I have a pending trademark. This gives the current owner leverage. If they know that there is only one domain that you want and they have it, they will be able to get more money out of you.

• I would go ahead and contact the current domain holder now and start negotiations. There is no need to wait for the trademark process to get to any particular stage.

• The best thing you can do to keep them from taking advantage of you it to avoid letting them know how bad you want to domain. That is the only thing they could take advantage of. They are in a great position here. There is a product you want, and they are the only one in the world that has it.

Until you contact them, you'll have no idea where you stand. Just get in touch, let them know that you're interested in the domain, ask them if they're willing to sell it, and for how much. Then, negotiate from there.

Good luck!