Photos of a downtown Vancouver apartment kitchen: left, the floor's actual condition; right, a digitally altered listing photo of the same kitchen. Vancouver resident Susan Hollingshead says she discovered the hole in the kitchen floor after going for a viewing.Supplied
The property listing seemed just a little too good to be true. It was a cute, sunny apartment at a cheap price in Vancouver’s West End, and the pictures were suspiciously perfect.
Susan Hollingshead decided to take a chance and go for a viewing anyway. She quickly discovered the listing’s images had left out a gaping hole.
Literally. There was a big hole in the kitchen floor, where extensive damage had been digitally altered, seemingly with the use of artificial intelligence.
“I wanted to see it for myself, and when I walked in I immediately thought, ‘Oh, okay. Well, that’s what was too good to be true: the photos,’” Ms. Hollingshead, a 63-year-old North Vancouver resident, said, adding that the apartment overall looked shabbier than the listing’s edited photos.
AI-generated images have become a common fixture in the homebuying process.
They can be useful – virtually furnishing an apartment to give buyers a sense of what it would be like to move in. But realtors and buyers say an increasing number of AI images only obfuscate the quality of homes. These ads, like the one Ms. Hollingshead found, hide damage, change landscaping, improve natural lighting and virtually stage an apartment with furniture that would never fit its dimensions.
A photo using AI staging shows the apartment with the damage in the kitchen concealed, as well as altered lighting. Ms. Hollingshead says the experience has left her wary of real estate listing photos that look 'really nice.'Supplied
While some realtors use AI in their listings, many real estate professionals say the use of such images goes against board rules. In addition, agents say it’s challenging to address the problem when the system often relies on consumers to make complaints. They also say AI misrepresentation could shake homebuyers’ confidence and lead to court challenges on sales where details of a home were misconstrued.
“Now if it looks really nice, I’m always like, ‘Okay, is that real?’” Ms. Hollingshead said.
The Toronto Regional Real Estate Board, which represents more than 70,000 real estate professionals in the Greater Toronto Area, prohibits digitally altered photos that inaccurately depict a home.
“That said, enforcement is another story,” said Kenneth Yim, a Toronto-based broker of record with Keller Williams Referred Urban Realty.
Mr. Yim said assessing AI-altered images in listings can be challenging.
In a statement to The Globe and Mail, TRREB chief executive John DiMichele said the association is aware of growing concerns around AI use, and that editing beyond a seller posting virtually staged furniture is not allowed.
“At TRREB, we actively monitor listings and investigate complaints related to non‑compliant images and take appropriate steps to address issues when they occur,” Mr. DiMichele said.
“TRREB currently uses AI to ensure data accuracy and adherence to MLS rules.”
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Greater Vancouver Realtors, which represents more than 15,000 professionals and operates the Multiple Listing Service in that region, did not reply to questions about its own rules around AI use in digital ads, or whether the photos in Ms. Hollingshead’s situation breached its rules.
The Canadian Real Estate Association, which represents 160,000 members across the country and operates the MLS nationally, said in a statement to The Globe that while it is monitoring the adoption of AI in real estate ads, it doesn’t have explicit rules against the technology and isn’t yet concerned by its use.
For every 50 ads he sees, Toronto realtor Harpreet Singh said roughly one or two of them feature questionable digital editing.
A weak property market in Vancouver and Toronto means that sellers are more incentivized to spruce up their homes for resale. Inventory often sits unsold for months, and many buyers are unwilling to pay thousands of dollars a month for physical staging in hopes that it will help lead to a sale, according to several realtors.
And struggling sellers and agents may be tempted to hide issues to help draw more prospective homebuyers, Mr. Singh said, adding he would advise clients to steer clear of any listing that features misleading and digitally altered homes.
Realtors said it’s considered good practice to disclose AI use for virtual staging. But because local real estate boards make their own rules, there isn’t a clear national picture of what is and isn’t allowed, or when virtual staging goes too far.
Robert Saunders, chief executive of Toronto-based real estate law firm Ownright, said AI can cause issues when his firm helps clients close on a home purchase.
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“There are questions that come up quite frequently and disputes that can happen between the parties around misrepresentation,” Mr. Saunders said, adding lighting and hidden damage are common issues.
The negative sentiment around image editing is one reason why the Real Estate Staging Association, which represents professional stagers in the U.S. and Canada, isn’t concerned about how the increasing use of virtual staging could impact the industry.
“It’s bait and switch … and when the buyer gets there it’s a let down,” said Shell Brodnax, chief executive of RESA, who is based in North Carolina.
AI image editing could have even more adverse consequences for people purchasing or renting a home from afar.
Ceren Kolsarici, an associate professor and director of the Scotiabank Centre for Analytics and AI at Queens University, said she is looking for a rental apartment in Toronto and constantly encounters altered images.
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A common misrepresentation is when homes are virtually staged to show furniture in a way that makes the space look bigger. Adjusting the brightness of a home in photos is another problem. If a prospective buyer or tenant views a place in person at night, they could be unaware that the unit gets less sunlight than advertised.
“The risk of being deceived isn’t evenly distributed. AI hits hardest where people have the fewest options and are least able to verify,” Ms. Kolsarici said, adding students, newcomers to Canada and people moving interprovincially are more vulnerable in these situations.
When the market was hot and people were clamouring to purchase homes, Mr. Saunders said more people were willing to let this kind of deception fly.
Today, with the Toronto and Vancouver housing markets in the doldrums, that’s no longer the case.
“Buyer confidence is already quite low in terms of how volatile the market’s been,” Mr. Saunders said. “It leaves homebuyers in a tough spot because they don’t know what to trust anymore.”
