AI images reportedly boost real estate marketing but raise buyer concerns

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00:00The real estate industry is undergoing a digital transformation.

00:04One of the latest tools real estate agents are using to market properties is AI-generated images.

00:12From virtual staging to complete property visualizations,

00:16artificial intelligence is helping agents put together more attractive listings

00:20more efficiently than ever before.

00:23However, some buyers have started to question the true condition of several properties

00:27after realizing that AI-generated listing photos can conceal the worn-down,

00:33aging nature of the homes, Wired reports.

00:35The magazine spoke to a woman named Elizabeth from Michigan.

00:39She said as she was looking at homes on the market in her area,

00:43she began scrolling through listing photos, and she noticed a yellowish hue to some of them.

00:48She described one image that had a stairway leading to nowhere, saying it looked cartoonified.

00:54What can initially appear to be freshly renovated interiors,

00:57and pristine exteriors are, in reality, often chipped paint, outdated fixtures,

01:03and neglected maintenance clearly masked by digital touch-ups, Wired reports.

01:08As more potential buyers visit these properties in person,

01:11the contrast between the AI-enhanced images and the actual state of the homes

01:16has sparked growing distrust, prompting concerns about transparency

01:20and authenticity in real estate marketing.

01:23According to the National Association of Realtors,

01:25licensed real estate agents are not allowed to misrepresent a property.

01:29However, they can use AI-generated images to improve a client's experience

01:35and better serve their needs.

01:37A buyer's agent can use generative AI to help clients envision possibilities.

01:42However, they must be truthful and make sure clients understand what's real and what's hypothetical.

01:47According to Article 2 of the Code of Ethics and Standards of Practice of the National Association of Realtors,

01:54licensed real estate agents must avoid exaggerating,

01:58misrepresenting, and concealing of pertinent facts related to a property or the transaction.

02:03Now, if a listing agent uses AI to edit property photos,

02:08like adding furniture, fixing the lawn, or changing paint colors,

02:12they must clearly state that the photos have been digitally altered.

02:15If a listing agent posts AI-generated photos on the multiple listing service

02:20without disclosing that they've been edited,

02:23the agent's actions could mislead buyers,

02:25which could violate the Realtor Code of Ethics.

02:28For Straight Arrow News, I'm Lauren Keenan.

02:31If you want more on this story, download the Straight Arrow News app or visit san.com.

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