A WebmasterWorld thread alerts us to a fake domain auction where a webmaster is selling a domain with an over-inflated and entirely fake PageRank.
How is this being done? The user explains:
This seller builds up the backlinks and PR of his own site www.scam-domain-buyers-easily.org and then 301 redirects to the www.keywordwidget.com domain name. At the next update(s) that domain is then showing as having all the backlinks and the PR7. Then after the purchase the seller switches the 301 to redirect to his next selling site www.keywordwidgets2.com which bumps up the backlinks and PR of THAT site which he then lists for sale.
It's important not to focus on PR for domains. And you should always be responsible for due diligence, so make sure to check for fake PageRank.
It seems that this scam repeatedly occurs for unsuspecting buyers. In February of 2006, a similar incident was reported.
In the best case scenario, don't buy these domains on eBay, because all in all, it's not worth it.
Forum discussion at WebmasterWorld.