What characterizes stigmatized property?

Stigmatized property is characterized by a low market value due to negative associations. These negative associations may arise from a variety of factors, such as a crime history, prior occurrences of tragic events, or being located near undesirable facilities (like landfills or factories). Because of these associations, potential buyers may be deterred, leading to a reduction in the property’s perceived value. This stigma often persists regardless of the property’s actual condition or location, which can be distinguished from factors such as physical maintenance needs or construction status. In contrast, properties in prime locations or newly constructed buildings typically do not suffer from such stigmas and instead can often command higher market values.