Fake Estate: Digitally-doctored listing photos are on the rise

It creates a particular problem for investors buying property sight-unseen

TRD NATIONAL /
Mar.March 04, 2019 05:30 PM

(Credit: Pixabay and StreetEasy)

It will cost $2.40 for a paint job, $24 to replace flooring, and $40 to remove a wall or add a swimming pool.

Digital photo manipulation has become so widespread and cheap that home sellers are increasingly using the technology to spruce up their listings, the Wall Street Journal reported. This has the potential to create new headaches for end users, investors, appraisers and brokers.

“This is a really new technology,” Denee Evans, chief executive of the Council of Multiple Listing Services said. “It’s just starting to bubble up questions as to where is that line” delineating acceptable uses, she added.

One obvious risk is for sight-unseen buyers. A Redfin survey from last May found that 20 percent of recent homebuyers had made an offer on a house they had never visited, down from 35 percent in 2017 when the market was hotter. In 2014, Olshan Realty found that nearly half of NYC’s luxury product had been purchased sight unseen.

And then there are the investors and house-flippers like Opendoor, whose business model is based on making sight-unseen buys at scale, based on algorithms. Those algorithms will have to be trained to distinguish between real and virtually-staged listing photos.

Furthermore, with federal regulators pushing for automated appraisals that will make use of online listings, the hazards of doctored images could be spread to the general public.

Practitioners of virtual staging argue that it can protect tenant privacy, and help buyers better imagine future uses of the space. “Empty homes online are not super appealing,” Redfin’s Quinn Hawkins said. “It’s hard to figure out where your furniture is going to fit.”

An executive from BoxBrownie, one major provider of virtual staging services, recently urged brokers to post altered photos side-by-side with the originals. Often, the product on the listing site looks nothing like the real thing. It’s the company charging $2.40 for virtual paint jobs, with full room renovation images going for $64.

San Jose-based roOomy, which Redfin employs to stage vacant listings, says it discloses when the furniture in images is fake.

In any case, virtual staging represents a far cheaper alternative to the in-real-life kind, which can cost thousands of dollars and has generally been limited to luxury properties. [WSJ] — Kevin Sun


Related Articles

arrow_forward_ios
Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world
Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC
What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?

What will proptech look like in 2019 and beyond?
Gov. Andrew Cuomo has given the go-ahead to reopen schools for in-person learning statewide (Getty; iStock)

School’s back on. Will the NYC resi market follow suit?

School’s back on. Will the NYC resi market follow suit?
With many tech companies open to long-term remote work for their employees, questions are being asked about how that will impact the office and residential markets in hubs of tech talent. (iStock)

TRD Insights: What #WFH could mean for office and resi costs in tech hubs

TRD Insights: What #WFH could mean for office and resi costs in tech hubs
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
(Images courtesy of Victor Group)

The Getty condo chops prices up to 53%

The Getty condo chops prices up to 53%
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...