AI or real? Fake images of Dutch houses on Funda baffle home seekers

Images of houses that have been enhanced with artificial intelligence (AI) are cropping up more often on Dutch housing platform Funda and on social media. The company is reviewing its rules after AI photos increasingly mislead home seekers by creating unrealistic expectations. 

Fake AI images used to advertise Dutch houses

Research by Dutch newspaper AD has found several homes being advertised on Funda and by real estate agents on social media with fake AI photos. The images alter reality and make the homes appear better than they are, whether it's more spacious or completely renovated.

While some real estate agents use AI to digitally furnish a home to give potential buyers an idea of what the house could look like, reality often becomes distorted. An example given is that of a house in Leiden listed on Funda, the images of which have since been removed.

In the listing, the AI image of a 3,6-metre-long bedroom shows a bed taking up barely half of the space, while in reality you would need to squeeze yourself next to the bed to get through the room. 

For the same property, a back garden of 1,8 metres is shown to somehow fit a large sofa, coffee table and a daybed. Another case sees a dilapidated building in Ochten transformed into a charming farmhouse and used as the main image on social media.

Experts call on Funda to ban AI images for advertising houses

Anyone who has been house hunting recently will likely have come across at least one AI image of a house on the market. In some situations, it might even be that after scrolling through all the images, where you’re in shock at how amazing the house is for the price, you finally reach the real pictures at the end and your bubble bursts.

It’s instances like this that can feel misleading to potential homebuyers, especially if they don’t scroll through all the photos before booking a viewing. Or if no real images are given at all, as is the case in some listings on social media. 

"We always show the actual photo and the floor plan. An AI image like this is meant to show what a room could look like after being redecorated. It's not a measuring stick. Anyone who wants to know exactly how big a room is can see that on the floor plan," said a real estate agent at Schieland Borsboom.

They advise homeseekers to “look carefully, but also understand what such an image does and doesn't show.” But even when AI images are only used to show possible room decor, with real photos and floor plans provided, it can still feel like trickery.

Media lawyer Charlotte Meindersma agrees that it can be viewed as deception. "You're presenting a false impression, and an agent can be fined for that," Meindersma told AD. However, it is still a grey area. "At the same time, as a buyer, you also have a duty to investigate, so you can't hold an agent responsible for something you signed up for."

AI speaker Jarno Duursma believes that the technology should not be used on the housing market. "AI photos damage the credibility of both Funda and the entire housing industry," he says. "The only right option for Funda is to not allow this and to strictly manage it." According to Duursma, many AI photos can be detected with technology or, even better, with real people completing checks. 

Funda to review regulations on use of AI images

Under current rules on the Dutch housing platform, “minor, non-misleading adjustments” using AI are allowed as long as reality “is not materially altered”. The company also states that it can be difficult to recognise fake images in a timely manner.

"Unfortunately, we don't always see everything. But we assume that most real estate agents are complying with the rules," a spokesperson told AD. According to Funda, it cannot estimate how many AI images are used in housing listings on the site and how many have been removed.

The company is planning to tighten AI regulations on the platform. "Developments are happening so fast. Our legal department needs to take another good look at this. One of the new guidelines will be that it must be clearly stated that something was created with the help of AI."

With buying a house now requiring 160.000 euros in savings, many experts argue that home seekers should be able to get the full, realistic picture of a potential home, considering it's one of the biggest purchases a person will make in their lives.