A buyer’s agent is furious about the increased use of AI in real estate listings, which he claims is misleading Aussie buyers and renters.
“I’ve started to see AI just out of control,” Dion Marsden told Yahoo News.
Over time, the Melbourne-based agent said he’s noticed people have begun using AI far too liberally to create images for properties, to the point where many listings have become unreliable.
“Now it’s progressing into virtual staging and… completely manipulating photos to make houses look as if they’ve been refreshed or updated or painted, or the flooring’s been done when it just hasn’t been,” he explained.

A Melbourne renter shared the huge difference between the photos advertising the rental property and what things looked like in real life. Source: Domain/Shit Rentals
The increased use of AI is creating a “massive issue” for people looking for housing, as they waste time making the trip to look at properties that are in poorer condition than what was showcased online.
Comparing altered images to earlier listing photos
Recently, Dion was sceptical of a real estate listing, which prompted him to find older images of the property online.
He said what he discovered was proof.
“If you’re a buyer and you’re looking at a photo, if it looks too good to be true, most likely it’s too good to be true.”
In an example he shared online, he shows a sales photo posted in the past compared to the AI-edited image of a property’s bathroom that was recently shared in a listing.
“We just could tell that the tiles and the paints and the lights were completely different and perfect when that’s not actually the condition of the property itself,” he said.

Buyers agent, Dion Marsden, shares an image he found before a photograph was enhanced using AI. Source: Supplied

A photo found by Dion he says has been AI-enhanced which is a growing trend frustrating buyers and renters looking for housing. Source: Supplied
How can Aussies avoid being tricked?
This example is one of many that Dion has spotted, which is why he is encouraging buyers and renters to think critically about what the listing claims to offer.
“The best thing a buyer can do is actually go onto past sale photos, to compare the photos that are currently online.”
Dion said he also noticed extensive use of AI to virtually stage homes which are seemingly “making spaces look bigger than they truly are”.
“And that’s just really frustrating for a lot of buyers.”

One renter submitted images of a property they inspected to the Shit Rentals database and claimed the photos online were ‘heavily photoshopped and set-dressed’. Source: Domain/Shit Rentals
As a solution to the inaccurate listings, Dion is urging sites like realestate.com.au and Domain to “instantly ban or take down any listings that have any AI manipulation”.
He further explained that the problem lies in the fact that AI-altered images are not being clearly disclosed and that there is a lack of regulation.
The Australian Consumer Law does not have specific rules outlined regarding AI-generated images, but it does require advertising not to mislead or deceive consumers.
RELATED:
As of last month, landlords and real estate agents in New South Wales are now forced to declare when they’ve used artificial intelligence to edit pictures in rental ads.
Rental advocates have been calling for other states and territories to follow the state’s lead, or go even further and ban the use of AI-edited images altogether.
Yahoo News has reached out to realestate.com and Domain for comment.
You can also follow us on Facebook, Instagram, TikTok, X and YouTube.

