Went to See a House and It Didn't Exist... Beware of Real Estate AI Listing Photo 'Bait and Switch'

Fake Interiors Prevail on Real Estate Platforms

AI Disclosure Becoming Mandatory, but Not for General Rentals

"I'm going to post this on a real estate site. Could you naturally upgrade the interior?"

Kian84 (real name Kim Heemin)'s rented room where he lived over 10 years ago. Screenshot from Ruliweb

A photo of the simple rented room Kian84 lived in 10 years ago was uploaded to a generative AI. When asked, "Make it look modern and luxurious, as if it would be sold immediately," a completely different space was created in about 12 seconds.

A newly AI-generated appearance of a studio apartment. ChatGPT

New items, such as an advanced computer, a small fireplace, and a clothing steamer, appeared, which were not there before. The cherry-colored moldings transformed into upscale arches, and the old lightbulb seamlessly changed into a warm-toned chandelier. With just one click, the old apartment turned into a newly built property listing.

How Far Can Virtual Staging Be Allowed in Real Estate?

Now that a few lines of prompts can instantly transform a home's interior, AI-generated real estate photos that are different from reality are spreading, centering on the United States, raising growing concerns about consumer damage.

According to the New York Times (NYT) on September 8 (local time), "virtual staging"—where fake photos featuring nonexistent fireplaces, altered lawn colors, or composite sunset scenes are used in listings—has become a serious issue recently on U.S. real estate platform Zillow.

In July, Zillow announced, "If listing photos have been altered using AI, this must be clearly disclosed." A company representative stated, "It has become difficult to tell whether interiors were produced with AI images, and the use of such images among sellers is spreading even more quickly."

The U.S. Introduced 'AI Disclosure Requirements,' but Not for General Rentals

As more listing photos are edited with AI, regulatory action has also become more active. Since January, California has required real estate agents to specify when AI-edited photos are used in advertisements and to provide a link or QR code to view the original photo.

Virtual staging before and after images. Zillow

However, there are limitations to the current regulations. In the U.S., relevant laws mostly apply to sales or long-term rentals over one year, so there are blind spots where the rules do not immediately apply, such as studio apartments rented by the month, short-term rentals, or advertising on Airbnb and similar platforms.

Additionally, general enhancements such as editing lighting, color correction, or improving image sharpness—where the actual structure of the home is not changed—are excluded from mandatory disclosure, so there is criticism that standards for how far AI editing should be permitted remain unclear.

This is not unique to the United States. According to the British daily "The Times," a job seeker searching for an apartment in London said, "It was clearly a scam when AI was used to erase moisture stains, mold, and even small cracks."

The individual added, "Although there was wording in the brochure that the photos were AI-generated, it was written so tiny in white on a white background that it was almost impossible to notice unless you looked very closely."

No Clear Regulations Domestically... How to Respond to Fake Listings?

In the Korean real estate market as well, there is little legal basis to strictly restrict AI-enhanced property listing photos. Article 18, Paragraph 4 of the current Certified Real Estate Agents Act stipulates punishment only for falsifying objective facts such as price, location, area, or number of rooms.

A property listing status chart is posted at a brokerage office in Seoul. Yonhap News Agency.

However, "basic" levels of editing, such as changing the color tone of photos or erasing signs of aging, are outside the scope of regulation. Since the essential structure of the house is not changed, there are no clear and detailed criteria for determining whether such acts constitute exaggeration in advertising.

Experts advise, "To prevent damage, do not rely solely on listing photos, but compare them with the description, floor plan, room size, and 3D tour." They also explained that if a property seems too perfect, you should carefully check for unnatural shadow directions or distorted furniture edges.

They added, "Above all, if photos and information do not match, demand the original, unedited photos and a real-time video tour from the agent, and do not rush into a contract or wire a deposit before seeing the property with your own eyes."

This content was produced with the assistance of AI translation services.