Is there any downside to buying a domain with a pre existing PR value? I have noticed more than a few with higher than normal PR values, why not just buy them up and build from there?
Unless its a keyword domain that you are looking for. Otherwise, as you have mentioned, register one and build it from there
You got be very careful with 'domains'. If it is a site you are okay and transferring it to your host will not effect anything however if it is a domain that has dropped it is likely to lose its value. Buy a domain based on its value without the backlinks/pr or you may be disappointed. Also changing the content can make the site lose its value as well.
You should check if the domain is blacklisted before you buy it, but in general I think it is helpful to buy an old domain with PR / Backlinks!
I think it's okay to buy PR domains so long as they are not blacklisted. You can easily get your investment back within a few days.
I believe buying existing domain can save a lot of time. If i am the purchaser, i will definately prefer to purchase the entire site.
If these are dropped domain (I guess original poster is talking about dropped domains), dont expect to get any result before months normally. Google rejects to index your new content! This is what i experienced. And in fact i dont know what will happen after those few months yet
I have found with my older domains, both purchased existing and newly created domain names, Google gives them preference both in SERP and in min bids with Adwords. If you are intending to buy the domain and work the site like someone who isn't trying to scam a quick buck, you should benefit from a seasoned domain, they're more trustworthy.
What if someone used a 301 redirect to point to a popular site and then sold that site? I assume one would get penalized?
You can read more here http://www.mattcutts.com/blog/seo-advice-url-canonicalization/ http://www.mattcutts.com/blog/seo-advice-discussing-302-redirects/
There were 3-4 PR5 backlinks. But that is not the point in my opinion. Although i am getting lots of fresh content, added a sitemap and have some new quality PR5 backlinks, Google is too slow to index the site. I am sure if i did these things with a new domain, it will index whole site in a few days! I bought the domain from snapnames. That is my first experience buying a dropped domain. I will request link from similar web sites and we will see what will happen in the next update.