Humber/Ontario Real Estate Course 4 Exam Practice

What type of property stigma can influence its perceived value?

1. Affects the property's value for a significant time after the event.

2. Enhances the property’s worth.

3. Declines over a brief period.

4. Is irrelevant to buyers.

5. Should be kept confidential from buyers.

6. Does not impact the property's legal status.

The correct answer is: Affects the property's value for a significant time after the event.

The choice that identifies the influence of property stigma on perceived value is correct because property stigma refers to negative associations that can develop around a property, often due to events such as a crime occurring in or near the property, environmental issues, or even a previous reputation of criminal activity. Such stigma can significantly affect how buyers perceive the property's value for an extended duration after the event, regardless of whether the issue has been resolved or mitigated. Properties that are marked by negative history or incidents may remain undervalued in the eyes of potential buyers, leading to a perception that does not align with the intrinsic or current market value of the property. This lingering effect suggests that once negative perceptions are established, they can take a considerable amount of time to dissipate, impacting the property's marketability and selling price. Thus, the stigma can create a significant barrier to achieving a price that reflects the true market conditions. Other options, while they present different takes on property perception, do not accurately capture the long-lasting influence of stigma on a property's perceived value. Options suggesting that stigma enhances property worth, declines quickly, is irrelevant to buyers, should be kept confidential, or does not affect legal status do not align with the reality that stigma can be a durable aspect influencing buyer sentiment and