Humber/Ontario Real Estate Course 4 Exam Practice

Which of the following describes a stigma in real estate?

1. Influences the duration needed to sell a property

2. Can be easily fixed with repairs

3. Is generally viewed positively

4. Refers to tangible property issues

5. Typically attracts more buyers

6. Usually increases property value

The correct answer is: Influences the duration needed to sell a property

A stigma in real estate refers to negative perceptions associated with a property that can affect its marketability. These perceptions can arise due to various factors, such as historical events, prior use, or even neighborhood reputation, influencing the duration needed to sell a property. A home that has a stigma may remain on the market longer than similar properties without such associations. While it might seem like other options could relate to a stigma, they don't capture the primary impact of stigma as accurately. For example, while repairs might influence a property’s appeal, a stigma is more about perception than physical condition. Stigmas are often seen in a negative light rather than positively. Tangible property issues might be directly observable and addressable, while a stigma is about intangible feelings or beliefs about the property or area. Stigmas usually discourage rather than attract buyers and generally lead to a decrease in property value, contrary to the notion that they would increase it.