AI is reshaping how homes are marketed - and creating disclosure challenges
Real estate agents are increasingly using artificial intelligence to generate 3D renderings, virtual staging, and cinematic videos of properties. The technology is helping sell empty lots and vacant homes by showing buyers what a space could become - sometimes before construction begins.
In Southington, Connecticut, realtor Rachael Cisz needed to market 12 undeveloped residential lots. She partnered with Ascend Studios, which used AI tools to transform blueprints into detailed renderings and videos. The results impressed her: "That's crazy. That's AI. Even the way the sun hits the furniture."
Ascend Studios co-founder Sebastian Cango said AI has accelerated production timelines. "Some of the things that we're doing these days, we couldn't do six months ago," he said.
The company starts with official drawings and blueprints, then uses AI to generate 3D models that designers refine into video content. The process works directly with developers and builders, not on speculative images.
Virtual staging is becoming standard practice
Empty rooms are now routinely furnished digitally to help buyers visualize potential uses. Cisz said this allows clients to "see the potential in properties that they may not have been able to see before."
But the practice has a darker variation. Across the country, some listings feature AI-generated images that add features that don't exist: lush lawns, altered landscaping, changed driveways. The term "housefishing" - borrowed from catfishing - has emerged to describe these misleading alterations.
Accuracy and disclosure are becoming requirements
Ascend Studios emphasizes realism in its work. Cristian Vinan, who works at the company, said virtual staging must be proportionally accurate: "A king-size bed can fit. We try to measure our virtual staging to become an actual, normal-sized bedding."
The company watermarks all AI-altered images as virtual staging or AI renderings. "So nobody is being misled when it comes to putting a listing online," Vinan said.
California now requires clear labeling when listing photos have been altered by AI. The National Association of Realtors has also issued guidelines governing digital enhancements in marketing.
Cisz noted the consumer protection aspect: "It is important for consumers to know that, so they don't feel catfished by a property."
AI is moving beyond marketing
Real estate professionals are using AI for pricing analysis, transaction management, and other back-office functions. Morgan Stanley predicted last year that AI could generate $34 billion in cost savings across the industry by 2030.
In some markets, buyers are already using AI tools to navigate much of the home-buying process independently. But agents say technology cannot replace on-the-ground expertise or the responsibility to ensure listings accurately reflect reality.
Cisz described AI as a tool to "eliminate as much risk and stress as possible and really elevate their buying and selling experience." The emphasis remains on accuracy, not just speed or visual appeal.
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