What are distressed properties?

Distressed properties are typically characterized by their poor physical condition or financial problems that impact their marketability and value. Such properties may have significant maintenance issues, be in need of repairs, or face financial distress such as foreclosure or tax delinquencies. This situation often arises when an owner is unable to maintain the property due to various circumstances, leading to a decline in both the property's condition and its value in the real estate market.

The other options describe conditions opposite to those of distressed properties. For example, properties in excellent condition with high value do not fit the definition of distressed, as they are marketable and desirable. Newly constructed and unoccupied properties may be in pristine condition but are not classified as distressed unless they have other underlying financial problems. Similarly, properties that have been renovated and upgraded are typically considered valuable and are not distressed unless they still face financial difficulties that overshadow their physical appeal.