When AI Makes Homes Look Too Good to Be True: The Rise of Housefishing

by Gerson Seise REALTOR

Scrolling through online home listings, it’s easy to be impressed. Sunlight floods every room, landscaping looks like it belongs in a magazine, and kitchens have gleaming new appliances. But thanks to artificial intelligence, some listings are now closer to fantasy than reality. This new phenomenon, called “housefishing,” is causing waves in California’s real estate market.

What Is Housefishing?

Housefishing is when AI or advanced photo editing makes a home look significantly different online than it does in real life. Some examples include:

Virtually adding furniture or décor to an empty space
Replacing dead landscaping with lush greenery
Removing unsightly structures or power lines
Altering paint colors or finishes
Even creating views that don’t exist

While some enhancements—like virtual staging—help buyers visualize a property, others can be misleading and frustrating. Touring a home that doesn’t match online photos is no longer just disappointing—it’s eroding trust in digital listings.

California’s New Law: Transparency Required

To combat misleading visuals, California introduced Assembly Bill 723 (AB 723), effective January 1, 2026. The law requires real estate professionals to:

Clearly disclose when a property photo has been digitally altered
Provide access to the original, unedited image alongside the enhanced version
Apply the rules across MLS listings, websites, brochures, and social media

The goal is to balance the creative possibilities of AI with honesty in marketing. Simple edits like brightness or cropping are still allowed, but any changes that affect the home’s physical appearance must be disclosed.

How AI and Housefishing Are Impacting the Market

In competitive markets like Laguna Beach, first impressions are everything. Buyers often decide which homes to tour based solely on online listings. Misleading images can:

Waste buyers’ time on showings that don’t match expectations
Undermine confidence in real estate agents and listings
Create reputational risks for sellers who overpromise

Agents who embrace transparency—showing both original and enhanced photos—build trust, protect buyers, and differentiate themselves in a crowded market.

What This Means for Buyers and Sellers

Buyers should always ask for unedited images or request a walkthrough before making decisions. Sellers and agents should use AI responsibly: enhance photos for clarity and staging—but never misrepresent the property.

AI isn’t going away, and neither are digital listings. But California’s law is a reminder that honesty is still the most powerful marketing tool. Showing the dream is fine—but showing the truth builds trust.

REALTOR® Perspective

"AI can make a home look perfect online, but buyers still need to see the real property to make confident decisions. Transparency is key—showing both the original and enhanced images helps clients trust the listing and the agent. In a market like Laguna Beach, where every property has unique charm, honesty in marketing isn’t just ethical—it’s good business."

— Gerson

Written by Gerson Seise REALTOR® Cell: 949.533.7053
GERSON SEISE REALTY - Real Brokerage Technologies