AI-modified listing photos blur line between enhancement, deception
With consumers growing frustrated over AI-altered listing photos, it may behoove agents to start adding disclosures when AI is used — if they don’t already.
Key points:
- Consumers are quickly catching on to how AI tools are altering home listing photos — and many aren’t happy about it.
- The practice, which has given rise to the term “housefishing,” has sparked warnings from within and outside of the industry as real estate leaders and politicians alike seek solutions.
- Some real estate organizations and companies are issuing AI guidance for listing photos in particular. NAR, for instance, says AI tools should be applied to “show possibilities” in a home — not to “rewrite reality.”
As advancements in artificial intelligence continue moving forward, a growing number of real estate professionals are using AI tools to touch up home listings. But in some cases, the alterations are becoming so significant — a non-existent fireplace here, completely different lighting fixtures there — that consumers and state governments are starting to cry foul.
Even portal giant Zillow weighed in on the practice this summer on its blog, declaring that consumers deserve access to accurate listings as new technology evolves.
As AI alterations become more advanced and difficult to discern, the question becomes: Where should real estate professionals draw the line?
Consumers growing frustrated
According to a study released in June by real estate team growth platform Coraly, nearly 11% of roughly 40,000 primary listing photographs drawn from Zillow, Redfin, Realtor.com and Homes.com in the first three months of 2026 showed evidence of being digitally altered.
And renters and homebuyers are noticing. Some have started taking to social media to share how AI has deceived them in online listings, The New York Times reported.
New York City-based TikTok influencer Curt Walker, for instance, posted a video in May that revealed the listing photos he encountered in his search for an apartment were vastly different from the unit's true nature. While the listing photos showed a bright, large unit, Walker encountered cramped, dark spaces — and a shower in the kitchen — when viewing the apartment in person.
Walker is not alone in his frustration, with more irritated buyers starting to use the term "housefished" to describe misleading listings, according to the National Association of Realtors.
Real estate brokers are also increasingly on the alert when helping buyers search for homes. As Rochester, Minnesota-based agent Haley Reynolds told the Times, she recently found herself wondering if she was "in the right house" when she took a buyer to a showing and found outdated tiling.
Industry guidance starting to emerge
NAR says in its Code of Ethics that members must "refrain from exaggerating, misrepresenting or concealing pertinent facts" of a property and instead show a "true picture" in any advertising and marketing materials. The association elaborated in an August blog post that AI should be used in listing photos only to "show possibilities" in a home, "not rewrite reality."
Meanwhile, other associations and companies within the real estate industry are increasingly releasing their own rules and advice for AI use.
In March, the National Association of Exclusive Buyer Agents (NAEBA) issued guidance on virtual staging and digital photo alterations. These recommendations included encouraging buyers to check for labels, such as "digitally altered," and ask for original copies of photos that look too perfect to be true. Altered images that create a misleading impression of a home's condition can create concerns over false advertising, the NAEBA stressed.
"The concern is the gap that can occur when images imply features, scale, or conditions that aren't there in person, especially when digital changes are not clearly disclosed," NAEBA Past President Rich Rosa said in a statement.
In its July blog post, Zillow said its own standards "require that listing photos accurately represent the home." The portal added that it supports disclosure when AI is used to alter a listing photo and believes the original photo should be available alongside the altered version when possible.
Recent actions by state governments
Politicians are also starting to seek solutions, with some state governments beginning to propose and pass legislation surrounding listing photo alterations. The industry's growing awareness of AI image modifications paired with moves by lawmakers suggest that real estate brokers may want to get ahead on adding disclosures when relevant before they get left behind.
California is one of the more visible states that has passed legislation so far via AB 723, which took effect in January. The law requires licensed brokers and agents to disclose "digitally altered images" in any ads or marketing materials for real estate sales with a public link to the original image.
Wisconsin has also passed legislation — Act 69 — that will take effect at the beginning of 2027. The law states that real estate licensees must disclose when technology materially alters how a property is displayed in marketing images. It also stipulates that listings must be publicly marketed within one business day of the start of any listing agreement.
New Jersey is likewise considering legislation that would restrict the use of AI-generated images in listings.
Meanwhile in the Empire State, New York City Mayor Zohran Mamdani has indicated that he wants to require brokers to disclose the use of AI in listings as part of a renters' assistance effort. In late 2025, New York's Department of State also issued a trend alert warning consumers about the increased use of AI images in home listings and advising them on how this practice could produce misleading property representations.