Marketing & Media

AI in real estate: A powerful tool, if we learn from others' mistakes

There’s no denying it: AI is here, and it’s changing how we work in real estate. From writing polished listing descriptions to staging homes with a few clicks, tools like ChatGPT and virtual editing software are helping us move faster, work smarter, and do more with less. But with great power comes great responsibility, and sometimes, a few spectacular fails.

Take a look at some real-life examples, especially from our own backyard, where things didn’t quite go to plan. Why? So we can learn from them and use AI more confidently, creatively, and ethically.

When ‘Virtually Staged’ Becomes Virtually Ridiculous

A Wellington rental listing recently made the rounds online, not because of the property, but because of its bizarre staging. Reddit users had a field day pointing out comically tiny furniture, dining settings for six squeezed into a four-chair table, and a wardrobe that appeared to float in mid-air.

While AI staging can absolutely help potential tenants or buyers visualise a space, it can also backfire if done carelessly. The lesson? If it looks off, it probably is. Always sanity check AI enhanced images before they go live.

Seen here: Wellington AI Staging Fail on Reddit

Photoshop Gone Wild

Photoshop fails aren’t new, but AI has accelerated their frequency and strangeness. One Christchurch listing featured a room with duplicated trees, cloned carpet, and a fence that didn’t quite follow the laws of physics.

As one Redditor put it:

‘Is anything in this photo even real?’

Over-editing not only makes listings look fake, but it can erode trust in your brand. Buyers and renters want to know what they’re actually walking into. That starts with honest visuals.

Spotted on: r/newzealand - Real Estate Over-editing

The Case of the Imaginary Schools

While not in NZ, this story from Australia hit close to home: an LJ Hooker office used ChatGPT to describe a suburb and included two top-rated local schools in the copy. The problem? Neither school actually exists.

This wasn’t just embarrassing, it raised questions about compliance and accountability. The Real Estate Authority (REA) in NZ has since issued clear guidance: if you use AI to generate content, you are still responsible for the accuracy. Always check the facts before hitting publish.

Read more: Guardian article on AI real estate errors

Here’s how to stay smart with AI

• Fact-check everything. Don’t assume it’s right just because it sounds polished. 
• Label AI-generated images clearly, especially if using virtual staging. 
• Use AI for the boring bits, not the important bits. 
• Let it help with drafts, not decisions. 
• Keep your human touch. Local insight and emotional intelligence still matter most.

The takeaway isn’t to fear AI, it’s to respect it. Used well, it can streamline your work, boost creativity, and sharpen your communication. But used carelessly, it can mislead clients, damage your reputation, and breach advertising standards. Because while AI might write a great description, it’s your name that goes on the signboard.

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