Humber/Ontario Real Estate Course 3 Exam Practice

A known stigma associated with a particular property:

1. Can be ignored for interested buyers.

2. Can potentially impact a property for a significant period following the stigmatizing event.

3. Has no effect on the property's market value.

4. Usually increases a property’s value.

5. Will likely be forgotten by potential buyers within a short time.

6. Will not pose any concern in high-demand areas.

The correct answer is: Can potentially impact a property for a significant period following the stigmatizing event.

The choice highlighting that a known stigma associated with a particular property can potentially impact it for a significant period following the stigmatizing event is the most accurate. Stigmas can arise from various factors such as a previous crime, violent event, or environmental issues associated with the property. These perceptions often linger in the minds of potential buyers, affecting their willingness to purchase and the price they are willing to pay. Stigmas can create an emotional response that leads buyers to be cautious or hesitant, which can extend beyond a short timeframe, influencing the market dynamics for that property. Consequently, properties that experience stigma may find it challenging to regain their full value or appeal in the market, affirming that the stigma can have lasting repercussions. The other options suggest that stigmas can be easily overlooked, have no impact on value, or that concerns would diminish quickly, which underestimates the complexity of buyer psychology and market behavior. Additionally, the idea that stigmatized properties may not raise concern in high-demand areas overlooks how market perceptions can still be significantly influenced by the stigma itself, regardless of overall demand trends.