In the calculation of resale value, how does a 3% selling cost impact the final figure?

The correct choice indicates that a 3% selling cost reduces the final resale value because selling costs are expenses associated with the disposition of an asset. When the resale value of a property is calculated, these costs are typically deducted from the gross sale price. The gross sale price represents the initial amount received from the buyer, but in order to arrive at the net proceeds from the sale—what the seller ultimately retains—expenses such as selling costs must be subtracted.

For instance, if a property is sold for $1,000,000 and incurs a 3% selling cost, this cost amounts to $30,000. Therefore, the effective amount the seller retains from this transaction would be $970,000, reflecting a reduction due to the selling costs. This illustrates how selling costs directly influence the calculation of resale value, leading to a lower net figure that the seller ultimately receives.

While some choices might suggest different relationships between selling costs and resale value, the key understanding here is that these costs are legitimate expenses that must be accounted for, effectively decreasing the owner's revenue from the sale.