Gross Sales Proceeds

Gross Sales Proceeds refer to the total amount of money generated from the sale of a property before any expenses are deducted. In other words, it's the initial amount a property sells for, without factoring in costs such as closing costs, commission fees, taxes, or any remaining mortgage balance.

For example, if a property is sold for $1 million, that $1 million represents the gross sales proceeds. However, the net sales proceeds (the amount the seller actually receives) would be this amount minus any associated selling costs.

In the context of a real estate financial model, gross sales proceeds are often used to calculate potential returns from a property sale. However, to get a true understanding of the profit from a sale, one would need to subtract the various costs associated with selling the property, as well as the original acquisition cost.