Godaddy deals with there expired domains a bit different that most registrars. Their Grace Period lasts 42 days.
During the first 19 days of this period the owner of the domain can renew the domain for the standard renewal fee. After 19 days a fee of $80 is charged above the standard renewal fee.
After the 25th day the expired domain is placed in Godaddy’s Auction. The price on dot com domains starts at $10. You will need to pay a yearly fee of $4.99 to be able to take part in an auction.
After the 42nd day a 3 day auction is started. So there is no snipping at the end of the auction any bid will extend the auction by 2 minutes.
I picked up 2 expired domain this week, one for $45 from a Godaddy auction, and the other from a SnapNames auction for $59. Both domains have a Website in the Wayback Machine which we will be putting up on the domain.
The value of both of these sites is around $500 if sold right out or if someone where to place 10 text link rentals ads on the home page of one domain could bring in around $250 a month.
In the next two year I am planning to purchase 200 sites like this. I am currently have 5 other domains backordered that I will be part of a private auction and another 7 domains that I have put a backorder on that I hope to be able to bid on.