The real estate industry is undergoing a digital transformation, and one of the latest tools real estate agents are using to market properties is AI-generated imagery. From virtual staging to complete property visualizations, artificial intelligence is helping agents put together more attractive listings more efficiently than ever before.
However, some buyers have started to question the true condition of several properties after realizing that AI-generated listing photos can conceal the worn-down, aging nature of the homes, Wired reports.
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Traditionally, staging a home requires renting furniture, hiring designers and scheduling photo shoots, which is expensive and time-consuming. Now, AI tools allow real estate agents to upload photos of empty rooms and generate realistic images featuring modern décor, lighting and furniture. This not only saves thousands of dollars per listing, but also lets agents tailor a home’s look to different buyer demographics with just a few clicks.
Buyers notice flaws behind the digital veneer
The magazine spoke to a woman named Elizabeth from Michigan. She said she noticed a “yellowish hue” to some homes on the market in her area.
“And then, as I was scrolling through the photos, I noticed that some things just weren’t making sense. There were stairways leading to nowhere,” she told Wired. “In general, it just looked cartoonified.”
What can initially appear to be freshly renovated interiors and pristine exteriors are, in reality, often chipped paint, outdated fixtures and neglected maintenance cleverly masked by digital touch-ups, Wired reports. As more potential buyers visit these properties in person, the contrast between AI-enhanced images and the actual state of the homes has sparked growing distrust, prompting concerns about transparency and authenticity in real estate marketing.
Ethical guidelines for agents using AI
According to the National Association of Realtors (NAR), licensed real estate agents are not allowed to misrepresent a property. However, they can use AI-generated images to improve clients’ “experiences and better serve their needs.”
A buyer’s agent can use generative AI to help clients envision possibilities. However, they must be truthful and make sure clients understand what’s real and what’s hypothetical. According to Article 2 of the Code of Ethics and Standards of Practice of the National Association of Realtors, licensed real estate agents must avoid exaggerating, misrepresenting and concealing pertinent facts related to a property or the transaction.
If a listing agent uses AI to edit property photos, such as adding furniture, fixing the lawn or changing paint colors, they must clearly state that the photos have been digitally altered. If a listing agent posts AI-generated photos on the Multiple Listing Service (MLS) without disclosing that they are edited, the agent’s actions could mislead buyers, which could violate the REALTOR® Code of Ethics.
Editor’s note: Lauren Keenan is a licensed real estate agent in the Omaha metropolitan area.
