What is the value of selling costs assumed in the resale calculation based on provided assumptions?

In real estate and property valuation, selling costs are often a key factor in the resale calculation, as they represent the expenses associated with selling a property. The value of selling costs can vary based on market conditions, property type, and other factors.

In this context, the value of 3% assumed for selling costs typically reflects a commonly accepted standard in the industry. This percentage is often used to cover various expenses involved in the selling process, such as agent commissions, advertising, legal fees, and transfer taxes. By adopting a 3% figure, it allows for a realistic projection that helps in making informed financial decisions regarding the resale of a property.

Values like 1%, 2%, and 5% might not capture the full range of potential costs involved in a sale or may be too low or too high based on average market practices. Therefore, the choice of 3% aligns more closely with typical assumptions used in resale calculations, providing a more credible estimate for potential selling expenses in the valuation process.