The better quality links (From Google, Wikipedia) that a website has the higher will be its domain authority. New websites start with a ranking of one, and as the number of links increase the domain authority rises. For example, a sports website that has links to sports newspapers and sports reporting sites will have a higher domain authority than a sports website that only has links to other sports and sports blogging sites.
The easiest and least time consuming option is to 301 redirect the old domain to your existing site. This tactic obviously works best if both sites are in the same sector and are targeting the same keywords; otherwise, if you have a pet supply site and you buy an old Texas Hold 'Em poker site, a redirect probably might raise some eyebrows among the search engines. If, however, your site is brandnamepets.com and you buy onlinepetsupply.com and 301 redirect the domain over, you're inheriting a lot of topical and appropriate links. 

As mentioned earlier, finding such expired domains can prove to be a daunting task especially if you don’t have a tool to make that process a walk in the park for you. Instead of spending your time searching for tools that you are not even sure will help you find expired domain names with lots of traffic and backlinks, how about you try a game-changing tool integrated into Webfire 3.0 software called Expired Domain Finder and make your expired domain search a lot easier?
I've seen some people comment about losing the link value of domains that have expired and picked up, but what about non-expired domains?  Let's say a competitor is going out of business and they still have a year or two left, and we buy their domain and site.  Is there a risk changing registrant info and registrars, even if I keep their site up and mostly the same as before?  I was under the impression that I'd want to keep it under their name so as not to hit the uber-reset button on the domain's inbound link value.
I wish I could tell you that expired domains are some sort of magic bullet solution to all your traffic problems and headaches. Unfortunately, if I were to say that to you, I would be lying. There are drawbacks. Just like with anything else in life, there are advantages and disadvantages. The problems with expired domains is that they are often hard to find on your own. You can take wild guesses and waste a lot of time, effort and energy, and end up with nothing. Also, if you were to try to scope out drop domains by trying to find them in the most common way, which is to use a drop domain exchange, expect to pay a lot of money. Why? Because of heavy competition. Keep in mind that you’re not the only person who knows that dropped domains can bring a lot of traffic to the table. There are many other online marketers out there that realize drop domains' traffic value.
Yes, we port in all of the domains from NameJet, SnapNames, etc. There are a lot of great deals to be found. Some are absolute trash of course but if you can sift through them and put some time in (hopefully that is what we are trying to do with our tools is save time and give some value add with the SEO metrics, alerts, etc.) then you can find some great bargains.
Also, I currently have two other domains that are registered with Squarespace, and I have their annual payments set up automatically so I never have to manually pay (and so nobody else gets that window of opportunity to take the domain away from me). Would it be possible that the owner of this domain might just have a similar system in place and that I might be wasting my time?
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Warehousing: I have no clue to a percentage of warehoused domains but I know it happens. Tucows even admitted it on my blog “I know you don’t like that we’re allowed to select expiring names for the Tucows Portfolio rather than letting them all go to auction or drop but that seems to be something we have to agree to disagree about.” ~ Ken Schafer (1st comment) http://www.dotweekly.com/could-you-explain-tucows
Contains, Starts, Ends You can use the search bar to search for domains that contain particular keywords you are seeking, e.g. a search for "car" will yield results for all expired domain names that contain the term "car". You can also use the search tool to find domains that begin, or end with the search term too, with the drop down box next to the search form.
Once you get to this point you know there have been DMAS listed. They have a number of domains linking to them and according to the way back machine which is WBY, you can see their site age. So, if you want to go with an older site you can see right here whether or not this is a site that you might be interested in, but before pulling the trigger you do want to check two things.
There is a common misconception that domains expire on their expiration date. If a domain registration is not renewed by its expiration date, the domain simply goes into "expired" status, which means all services are shut off. Typically, we provide a 35-day grace period during which the current holder can still renew it for the standard renewal fee. For more information please review our domain deletion policy.
Ultimately, I was left with a semi-automated process of scraping sites and running an intricate series of processes to come up with a list of expired domains that I then had to evaluate by hand. This meant I had Majestic and Moz open to check the backlink anchor text and Archive.org to check for obvious spam for every single possible domain. The process was excruciatingly slow and tedious, but absolutely necessary to find domains that would be suitable for building out.
Backlinks – These are basically anchor links present on external websites that take the visitor back to a domain. The higher the number and authority of backlinks, the higher the authority of a domain. For example, if a domain has a backlink from Forbes, TechCrunch or BBC, it’ll gain a lot of authority in the eyes of Google and other search engines. It’s like attaching a reference letter from Bill Gates to your CV.
Next, some of these expired domain names have ranked in high authority sites that are ranked or had ranked themselves. Besides, some of these domain names are worth a fortune. For example, domain names sell for about ten to twenty dollars each. However, those that are the most sought after can go for over $ 2500 a month because they have lots of traffic back links or rankings.The last advantage is that you don’t have to spend much to find expired domains.
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The whitelist filter for wanted characters is now split into three filters. The old whitelist is now named whitelist (only). When used, the domain has to consist only of the defined characters or numbers. No other characters are allowed. The new whitelist (any) filter finds domains that have at least one of the defined characters or numbers. The new whitelist (all) filter finds domains that have all defined characters or numbers at least once.
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