How should MLSs, portals address AI-enhanced listing photos? 

As artificial intelligence advances, it is becoming increasingly difficult for the average person to distinguish an unaltered image from a computer-edited one.

Currently, there is just a patchwork of regulation surrounding the use of AI-altered images — including in real estate listings, where modified photos are being used more often than some might realize.

The most common enhancements

Based on a recent study conducted by real estate team growth platform Coraly, nearly 11% of roughly 40,000 primary listing photographs (cover images and main gallery photos) drawn from Zillow, Redfin, Realtor.com and Homes.com during the the first quarter of 2026 showed evidence of being digitally altered. The study, dubbed "The Altered Listing: US Edition," was derived from the broader Global Property Portal Index's (GPPI) AI Alteration Index.

The vast majority of those altered photographs — 90% — were edited in some way to change the exterior appearance of the home or the landscape surrounding it. Coraly found that alterations typically fell into one of four categories: sky replacement and color enhancement, sky replacement alone, virtual staging over existing furnishings, and object removal.

"The most frequently manufactured asset in U.S. residential marketing is not the building. It is good weather," the study noted, with 69% of all altered images involving sky replacement. 

Slightly more than 13% of alterations involved home exteriors, while living room and bedroom photos only had an alteration rate of 6.4% and 5.9%, respectively. Notably, rooms where renovations might make a more significant difference in a home's value — kitchens and bathrooms — saw alteration rates of less than 1% across all major real estate portals.

Rate — and type — of alteration depends on the portal

The frequency of image alteration varied by search portal, the study found. On Zillow and Homes.com, exterior photos were edited at around six to nine times the rate of interiors, but on Redfin and Realtor.com, exterior edits were just one to two times more common than interior edits. The report attributed most of the difference to the greater frequency of virtually staged images on Redfin and Realtor.com.

Of the four major portals, Realtor.com had the lowest overall photo alteration rate of 8.7%, while Homes.com had the highest rate during the study period at 12.4%. Exterior photos with skies had a sky replacement rate of nearly 80% on Homes.com.

Redfin and Zillow had similar overall alteration rates of 11.2% and 11%, respectively, though Redfin had the highest rate of virtually staged photos across all portals at 17.7%.

The variances "should not be interpreted as conclusions about portal conduct," the report said, with Coraly noting that they may simply reflect differences in the sites' listing mix, MLS feed, agent demographics, platform AI tool development or editorial policies at the time of the study.

Regulation and enforcement gaps

Government and industry regulation has not kept pace with the rate of AI adoption in real estate, and while the use of AI in listing photos is not inherently bad, it does prompt questions about disclosure, Coraly's report suggested.

Of all primary listing images that showed signs of being altered, more than 90% had no visible disclosure about the alteration — a figure that was consistent across portals. 

California is one of the only states to pass legislation regulating the use of AI-altered listings. California AB 723, which took effect at the beginning of January, requires licensed brokers and salespeople to disclose the use of "digitally altered images" in ads or other promotional materials for the sale of real estate, and to include a link to a publicly accessible site where consumers can view the original, undoctored image.

Other entities have acknowledged the use of AI-altered listing photos but haven't required disclosures. For instance, the New York Department of State issued a trend alert to consumers in late 2025 warning that AI images in home listings "may produce misleading or exaggerated representation of properties." The state also reminded licensed professionals that misleading advertising is prohibited by law, and any ads must include "an honest and accurate depiction" of the home for sale.

NAR's Code of Ethics Article 12 requires Realtors to "present a true picture in their advertising, marketing, and other representations" and prohibits "misleading consumers, including use of misleading images," but it doesn't mention AI or disclosures explicitly. 

Changing workflows, contracts

Agents aren't necessarily trying to deceive consumers with altered images, Coraly's report noted — they just may not have the right workflow available to them.

For instance, some agents receive final JPEG images from photographers who have already touched them up and deleted the originals. Or, they might take a photo on their smartphone, run it through a filter and then automatically upload it to the MLS in an altered state.

Coraly, which worked with San Diego MLS on an integrated solution built for California AB 723, suggested that portals collaborate with MLSs on disclosure workflows.

The solution Coraly and SDMLS landed on was to have AI scan each image upon upload to the MLS and flag any likely AI-alterations before the listing is published. Those images are then matched to the unaltered originals. With each listing, a proof page is generated where original photos can be accessed by the public with a disclosure about alterations.

Brokers might consider updating their contracts with agents and vendors to include disclosures about AI-altered listings and require photographers to provide original, unaltered photos, Coraly suggested.

Increased transparency could also benefit portals, Coraly's study argued: "A portal that can credibly tell buyers every image is either unaltered or clearly labelled has a consumer value proposition the current market does not offer," the report stated.