The Rise of 'Housefishing': AI's Impact on Real Estate Listings

Real estate agents report increasing instances where properties viewed in person significantly differ from their online listing photos, a phenomenon termed 'housefishing.' This discrepancy is largely attributed to the growing use of artificial intelligence (AI) to enhance or virtually stage property images.

Impact on Buyers and Agents

Realtors like Sonia Rodriguez in Virginia and Jake Gordon in California have shared experiences where clients were disappointed by properties that did not match their digitally altered online representations.

Such disparities lead to wasted time for both agents and potential buyers, creating frustration and a sense of deception.

These discrepancies create frustration and a sense of deception for both agents and potential buyers, leading to wasted time.

Legislative Response in California

In response to these concerns, California implemented Assembly Bill No. 723, effective January 1. This law mandates that any digitally altered image used in real estate advertisements must include a disclosure. Additionally, if altered photos are posted online, the unaltered original photo must also be provided.

While real estate professionals like Gordon welcome the transparency the law aims to achieve, concerns remain regarding the enforcement challenges and defining the precise line between acceptable photo enhancement and deceptive alteration. Attorney Alan Zall noted the difficulty in legislating intent.

California's Assembly Bill No. 723 now mandates disclosure for digitally altered real estate images and requires the provision of unaltered originals.

Ethical Considerations and AI Adoption

The National Association of Realtors' code of ethics requires members to fairly represent properties, but this code does not apply to all real estate agents, and enforcement can be subjective.

Despite ethical debates, AI has become a common tool in the industry. Agents like Oklahoma's Melody Storey use AI for virtual staging to showcase a property's potential. Software developers, such as Sub Gautam of PropertyPixel, have created tools that allow for quick decluttering and aesthetic improvements to images without physical changes.

While ethical guidelines exist, AI has become a pervasive tool for virtual staging and aesthetic improvements in real estate photography.

Defining Acceptable AI Use

Industry professionals and developers generally agree that while AI can be used for minor aesthetic improvements like decluttering, altering significant defects such as stains or holes in walls without physical repair crosses an ethical boundary.

Photographer Ashley Marks advises agents against using AI to hide defects that will be evident during a physical showing, highlighting the potential for misrepresentation and legal issues.

There is a consensus that AI should enhance, not conceal; altering significant defects without physical repair is deemed an ethical breach.