In investment property analysis, what term refers to net proceeds from a sale after costs are subtracted?

The term "amount realized" specifically refers to the net proceeds from a sale after all associated costs and expenses have been deducted. This figure represents the total income the seller receives from the transaction, minus any costs such as commissions, fees, and taxes. It is a critical concept in investment property analysis because it provides a clear picture of the actual financial gain from the sale of the property.

Understanding the amount realized helps investors make informed decisions regarding property investment and sales strategies, as it reflects the true financial outcome of the transaction. It is often used in the context of calculating capital gains and other financial metrics that assess the performance of real estate investments.