New York auction house Sotheby`s had predicted the handwritten document - featuring the words but no musical notation for the legendary singer`s 1964 classic `The Times They Are A-Changin`` - would sell for around $128,000 and $193,000 before they went under the hammer at the weekend.
Hedge fund manager Adam Sender - who also owns the guitar John Lennon was playing when he met Sir Paul McCartney - beat off four other bidders to win the lot.
The lyrics were originally owned by Dylan`s friend, singer-songwriter Kevin Krown.
The singer`s words are not the only piece of musical memorabilia to be sold at auction recently.
Earlier this month, a collection of items - including lyrics, costumes and guitars - previously owned by late country star Johnny Cash sold for over $700,000 in Los Angeles, smashing expectations.
Darren Julien, President and CEO of Julien`s Auctions, who held the sale said: "Johnny Cash is a true legend and his collectability spans all continents.
"Bidders from around the world participated in the auction, proving that the Man in Black`s legacy will forever live on."