It’s an emerging trend that could dupe potential homebuyers out of their dream home.
The New York State Department of State is issuing a warning to homebuyers and real estate professionals about the use of pictures generated by artificial intelligence on listings.
“There are sort of multiple layers to it,” said Katie Sherwin, director of the New York Department of State Division of Consumer Protection. “As AI has grown, real estate agents have started using AI in their property listings, both for rentals and properties that are for sale.”
While this intent may not be malicious, Sherwin said it can be misleading.
There are others who are looking to take advantage.
“The worst side is the scammers that actually create fake properties or fake listings, and use AI to generate images to steal people’s money,” said Sherwin.
To prevent yourself from becoming a victim, officials encourage buyers to do research, seek referrals and credible sources from family and friends and never send money of a holding deposit until you’ve met the agent and viewed the property.
And, if it sounds too good to be true, real estate agent Anthony Gucciardo says it probably is.
“Often, the red flag is that the property will be listed extremely cheap,” said Gucciardo. “What they’re hoping to do is get somebody who is desperate for a rental, seize an opportunity, wants to lock it up and they immediately send that deposit. Once they send that deposit, the scammers are gone and on to the next victim.”
Officials say any misleading information should be reported to the New York State Department of State to investigate. There are laws in place to protect homebuyers from deceptive advertising and practices.