Navigating AI in real estate 

When searching for a home, property photographs are often the first thing that catches your attention. From virtually furnishing rooms to enhancing gardens and interiors, artificial intelligence (AI) is making it quicker and easier for real estate agents to showcase properties and help buyers and tenants picture their potential.

A recent ABC News article highlighted examples of AI-generated and digitally altered property images across Australia, prompting discussion about how the technology can be used responsibly while maintaining accurate property advertising.

How is AI being used in property advertising?

Virtual staging, which has been used in real estate marketing for many years, allows furniture to be digitally added to photographs, helping buyers and tenants imagine how a room could look when furnished. AI is now making this process faster and more accessible.

Other tools can improve lighting, adjust colours or enhance the appearance of outdoor spaces.

AI is an extension of these existing techniques and makes it easier and faster for real estate agents to showcase a property's potential, from enhancing photographs to generating marketing content.

These techniques can help buyers and tenants better visualise a property's potential, provided the images and text remain an accurate representation of the home.

REIWA President Rob Mandanici told ABC Radio Perth's Nadia Mitsopoulos there were practical uses for digital editing, such as removing personal items from photographs.

He also highlighted the importance of ensuring these enhancements don't misrepresent a property's actual features, such as its views, lawns or surrounding power lines.

What are the rules in WA?

Under Australian Consumer Law, real estate agents must not engage in misleading or deceptive conduct when advertising properties.

WA Consumer Protection also provides guidance on false or misleading representations about a property's characteristics, location or use.

These obligations apply to property photographs and written descriptions, regardless of whether AI or traditional editing tools have been used.

How can buyers and tenants navigate AI and digital marketing?

Property photographs are a useful starting point when searching for a home. Here are some ways to get a clearer picture of what a property offers.

• Explore virtual staging: Digitally added furniture can help you imagine a room's potential. Check photo captions or property descriptions for disclosures. Many property listings will show photos of virtually staged rooms and empty rooms.
• Compare photographs with floor plans: Use both to get a better understanding of the property's layout and how the rooms connect.
• Ask the agent: If you'd like to know more about how a property has been presented, ask whether photographs have been digitally enhanced or request additional images.
• Attend an inspection: Seeing a property in person is a great way to explore its features, layout and overall feel.
• Check important details: Confirm the features that matter most to you, whether that's outdoor space, room dimensions or nearby amenities.

Why transparency matters

During separate interviews with Nadia Mitsopoulos on ABC Radio Perth, Mr Mandanici and Commissioner for Consumer Protection Trish Blake emphasised the importance of being upfront about AI-generated property advertising.

“Disclosure is absolute best practice,” Mr Mandanici said.

He also supported identifying virtual staging, which can help buyers and tenants imagine how an empty room might look when furnished.

Ms Blake similarly encouraged agents to disclose digitally staged images, suggesting that a simple statement explaining when AI has been used could help build trust with consumers.

When used responsibly, AI can help bring a property's potential to life, giving buyers and tenants more ways to explore and imagine a future home.

With clear advertising, helpful information and open communication from agents, buyers and tenants can make informed decisions with greater confidence.