I am planning to purchase a domain off from the owner. Does anyone know whats the best way to trade a domain. I mean, the owner want me to wire him the payment, but I cant trust him that he will transfer the domain to me once he recieved the payment. I would like to know how does everyone go about it with such situation. All suggestions are welcome.

Ya gotta have faith. I don't know no other way.
Just like when you purchase from a business on line.

yes you just have to trust the person and hope they follow through... i did it just 2 days ago for a few hundred for a domain... it turned out fine though...

You need an escrow service like

http://www.escrow.com

They service above takes 3 to 6% of the total cost of the transaction. You should decide who pays the fees (buyer or seller). Or whether to split them.

I have found that the best service is escrow.com like adland pointed out. It protects the buyer and the seller, so in effect, you dont really have to trust the person, cause if they dont deliver, they dont get paid.
The thing that you have to be careful of, is that you gain full control of the domain name, and the previous registrant loses full control of the domain name.

Hi Eiv - "buyer beware" is the word on domains- ie trust is stupid.

If you are not an expert at this, a few more hours/days reading in this forum and others might help you. I also recomend you visit hostjet's site - I learned a lot there :)

I second www.escrow.com - good service.

Easy... just buy from the ones with good feedback record on eBay ;)

I've sold 111 domains in 6 months so far.