What is the term for property that has suppressed market value often due to factors like a death or haunting?

The correct term for property that has suppressed market value due to factors such as a death or a haunting is stigmatized property. This type of property experiences a decrease in desirability or value because of specific conditions or events that may lead potential buyers to develop a negative perception. Factors like a previous owner’s tragic death or rumors of the property being haunted can create a stigma, which can significantly influence the marketability of the property, even if the physical condition remains sound.

In contrast, distressed property refers to real estate that is in a state of disrepair or financial trouble, often necessitating extensive renovation or dealing with foreclosure. Foreclosed property is specifically a type of distressed property that has gone through the foreclosure process and is now owned by a lender or bank. Underwater property describes a situation where a property’s market value is less than the outstanding mortgage balance, which is a financial scenario rather than a stigma related to the property itself. Each of these terms encapsulates specific nuances of real estate conditions, but stigmatized property distinctly addresses the impact of negative perceptions on market value.