What defines a stigmatized property?

A stigmatized property is defined as one that has experienced an event or incident that may adversely affect its value or desirability in the eyes of potential buyers or tenants. This includes properties where a crime, serious incident, or any situation that might create a negative perception has occurred. Such incidents may lead to lingering stigma, irrespective of the property’s condition or market price.

Properties with structural issues might have physical defects that can influence a buyer's investment decision but are not classified as stigmatized based on past events or public perception. Similarly, properties managed by a brokerage do not inherently carry a stigma; their management status is unrelated to any negative historical reputation. Lastly, a property being overpriced is a reflection of market dynamics rather than any stigma associated with its past events or incidents. Thus, the defining characteristic of unjustified negative perception or reputation in the market aligns with properties acknowledged as having been sites of crime or incidents.