A real estate agent is raising concerns about the growing use of artificial intelligence (AI) in home listings after sharing side-by-side images that appear to alter the size, layout and features of a property.
The agent and original poster (OP), user the-friendly-squid, shared their frustration on Reddit in a post titled “Stop doing this with listing photos.”
Sharing side-by-side images of a property, they explained how AI edits can distort reality in ways that mislead potential buyers and damage trust.
In the first image, the AI adds “extra square footage that doesn’t make sense, changing paint color, removing carpet stains, and an extra chandelier that’s not there,” the OP pointed out. “No way you could fit that furniture that nicely in this space.”
In the second, it remodeled the fireplace, extended the middle wall, removed some electrical outlets and changed the flooring color.
“The buyer did not want to make an offer,” the OP wrote. “[They] specifically pointed out that the AI enhancements made them not trust it.”
‘Buyers will see the BS’
“At least if you’re going to AI stage listing photos, be better with prompting, or actually look at the photo to ensure it’s accurate to the real thing,” they continued.
“What’s the point of the AI enhancement when the real photo is right next to it? Buyers will see the BS. No point.
“Most buyers appreciate authenticity and accuracy with listing photos.”
That reaction aligns with concerns raised across the industry about how AI editing can cross ethical and legal lines.
According to a National Association of Realtors article, “You can’t misrepresent a property,” Matthew Troiani, NAR’s director of legal affairs, said, adding that Article 2 of the Realtor Code of Ethics prohibits exaggerating or concealing facts.
Troiani said agents should ask whether they are improving the client experience or misleading them, stating, “If you lead with transparency and in your client’s best interest, 99% of the time, you’ll be fine.”
Reddit Reacts
Reddit users flocked to the comments to weigh in, with many noting the potential penalties.
“Photos that materially misrepresent the property are a violation of [Multiple Listing Service] rules,” one wrote. “In the MLS whose rules I know best, it’s an automatic $2500 fine, no warning.”
They added that listings can be reported directly to MLS systems for enforcement.
Another user questioned the purpose of heavily edited images altogether: “Why not just post accurate pictures of what your buyers will see when they walk in?”
AI and Real Estate
According to Homes.com, “AI-edited listing photos are becoming more common, and changes are not always easy to spot.”
The outlet reported that misleading or unlabeled edits can raise legal concerns, especially as new regulations begin to take shape.
In California, a new law requires altered listing images to be labeled and paired with original photos. The law applies to any image changed through AI or editing software to add or remove elements.
Failure to comply could lead to fines or disciplinary action.
‘Crosses an ethical line’
Some agents still see value in virtual staging when used carefully.
“I think what AI does allow real estate agents to do is have access to tools that allow us to be more creative in listing a property,” Allison Freeman, a real estate agent, told Homes.com, describing how she used AI to stage an empty home.
Others, however, warn that altering structural features crosses a line: “Altering structural elements, views, room sizes or permanent features crosses an ethical line,” Lourdes Alatriste of Douglas Elliman told the outlet.
Newsweek has reached out to the-friendly-squid for comment via Reddit. We could not verify the details of the case.
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