PSI Virginia Real Estate Practice Exam

What characterizes stigmatized properties?

1. Properties updated with modern amenities

2. Properties branded as undesirable due to past events

3. Properties located in prime real estate areas

4. Properties that have a historic designation

The correct answer is: Properties branded as undesirable due to past events

Stigmatized properties are characterized by being branded as undesirable due to past events or occurrences associated with them. This stigma can arise from various factors, such as a murder, suicide, or any other tragic or notorious event that took place on the premises. Such properties may be viewed negatively by potential buyers or renters, affecting their marketability and value. In contrast, properties updated with modern amenities are generally seen as desirable and are not associated with negative connotations. Properties located in prime real estate areas tend to attract buyers for their favorable locations and high demand, thereby avoiding stigma. Similarly, properties that carry a historic designation may have unique characteristics and appeal, and while they may face specific regulations, they are not inherently stigmatized. The focus on past events that lead to a property being deemed undesirable is what distinctly characterizes stigmatized properties.