I really need an answer to this question too. Please, it's urgent. Thanks!
As I mentioned to shawn_007, I only just learned about this myself.
My best advice would be to do the same checks you would for any dropped or deleted domain.
Check if it's indexed in Google: Do a site:domain.com search to see if there are any pages indexed. Are the pages related to the domain, or are they filled with spammy content like Chinese text, pharmaceuticals, or gambling? Don’t forget to check the "Images" tab for any red flags.
Use tools like Semrush or Ahrefs to check the domain's "Domain Rating" (DR) or "Authority" score. If the score is between 0-5, it might not be worth bidding on, but if it’s over 50 and ranking for thousands of keywords with no competition in the auction, you could get a good deal on something valuable.
Look at the backlinks: Check the domain's backlinks using Semrush or Ahrefs. Pay close attention to the anchor texts and the sites linking to it. For example, if the domain is about "hair and beauty," you should see links from similar hair/beauty blogs, fashion sites, or magazines, and the anchors should match the topic.
Check the keywords: Use Semrush or Ahrefs to see what keywords the domain is ranking for. For a "hair and beauty" site, it should be ranking for related terms, like "beauty tips" or "makeup tutorials."
Use the Wayback Machine: Go to archive.org/web and look at snapshots of the site over the past few weeks, months, or even years. This will help you see if the site has always been about the same niche, or if it suddenly changed to something completely different.
By doing all these checks, you can get a better idea of whether the domain is worth bidding on or not.