Which term describes the amount of money that actually changes hands during a sale?

The term that describes the amount of money that actually changes hands during a sale is the sales price. This refers to the agreed-upon amount for a property or item that is exchanged between the buyer and seller at the time of the transaction. It is the final figure that reflects the transaction's value, excluding any financial incentives or contingent costs that may impact the overall transaction.

In contrast, net proceeds refer to the amount the seller receives after all costs associated with the sale (like closing costs, commissions, etc.) are deducted from the sales price. Closing costs encompass a range of fees that buyers and sellers may incur when completing a property transaction, such as appraisal fees, title insurance, and other related expenses, but do not represent the actual cash exchanged for the property itself. Market value represents the estimated value of a property based on comparative analysis and market conditions, rather than the transactional price that changes hands. Thus, while all these terms are relevant in real estate transactions, the sales price is the definitive figure that indicates the actual exchange of money during the sale.