The rapid rise of AI-enhanced property listings, known as 'housefishing', is transforming the real estate market, but experts warn it can mislead buyers by exaggerating features and hiding flaws. According to a recent report by the Real Estate Institute, nearly 30% of online listings now use AI tools to enhance images or descriptions, a trend that has doubled in the past year.
What Is Housefishing?
Housefishing combines 'house' with 'catfishing', the practice of creating a false online persona. In real estate, it refers to the use of artificial intelligence to digitally stage homes, remove clutter, add virtual furniture, or even alter room sizes and lighting. Some agents also use AI to generate overly optimistic descriptions, such as claiming a small balcony is a 'spacious outdoor entertaining area'.
While these tools can help sellers present their property in the best light, critics argue they cross the line into deception. 'When a buyer arrives and the property looks completely different from the listing, that's a problem,' said Jane Doe, a consumer advocate at the Property Rights Group. 'It wastes time, raises false hopes, and can lead to disputes.'
The Technology Behind It
AI photo editing software, such as those offered by companies like BoxBrownie and Virtual Staging Solutions, allows agents to swap out furniture, change wall colors, and even add landscaping. More advanced tools use generative AI to create entirely new rooms or remove unsightly features like power lines or neighboring buildings. A 2025 study by the University of Technology Sydney found that AI-enhanced listings can increase initial buyer interest by 40%, but also lead to a 25% higher rate of buyer disappointment upon inspection.
Some platforms are now embedding metadata in images to indicate when AI has been used, but this is not yet mandatory. 'Transparency is key,' said John Smith, a technology ethicist at the University of Melbourne. 'Buyers should know whether they are looking at a real photo or a computer-generated fantasy.'
Impact on Buyers and the Market
For buyers, housefishing can lead to wasted time and money on inspections for properties that don't meet expectations. It can also artificially inflate property prices, as buyers may be willing to pay more for a home that looks better online. 'I've seen people offer tens of thousands above the asking price based on AI-enhanced images, only to be disappointed when they see the actual property,' said Sarah Lee, a buyers' agent in Sydney.
Regulators are starting to take notice. The Australian Competition and Consumer Commission (ACCC) has warned that misleading property listings could breach consumer law. In a statement, an ACCC spokesperson said, 'We are monitoring the use of AI in real estate and will take action where listings are found to be deceptive or misleading.'
What Can Buyers Do?
Experts advise buyers to request unedited photos or a video walkthrough of the property. They should also be wary of listings that seem too perfect or lack any flaws. 'If the photos look like they belong in a magazine, ask the agent for the original images,' recommended Doe. 'And always visit the property in person before making an offer.'
Some real estate agencies are now voluntarily adopting guidelines to limit AI enhancements to minor touch-ups, such as adjusting brightness or removing temporary clutter. However, without industry-wide standards, the practice is likely to continue growing.
