What California AB723 means for Sacramento home buyers and sellers...

If you’ve ever clicked through a Sacramento home listing and thought, “Wow… this looks amazing,” only to tour the house and quietly wonder where the sofa, that amazing sunset, and vibrant green grass in the front yard went, then you’re not alone. Real estate photos have gotten very good. Sometimes too good. 

On all of my listings I hire an awesome professional photographer who does an stellar job at capturing the perfect angle, balancing light, and softening the rough edges of homes...but some agents and photographers take things a few steps too far and use AI or other tools to virtually add features a home just does not have, or photoshop out those fugly power lines running through the backyard, or virtually remodel a home. 

I have walked into homes with clients before and been like "Huh, I thought this kitchen was remodeled?"

Enter California AB723, a new law going into effect next week that is designed to bring and fewer surprises to real estate marketing photos. Starting January 1, 2026, real estate listings in California will be required to clearly disclose when images have been digitally altered in ways that materially change the features of the property. In plain English: if a photo has been edited to add furniture, change landscaping, remove unsightly neighboring properties, repaint walls, or otherwise make the property look meaningfully different than it is in real life, the listing must say so. And the listing must make this original image available. 

Now, don’t worry: this doesn’t mean listings have to look boring or unpolished. Basic touch-ups like adjusting lighting, color balance, optimizing the way a room looks with a wide angle lens, or cropping a photo are still perfectly fine. AB723 focuses on changes that could impact how a buyer perceives or understands the actual condition or features of the home. 

So as an example from one of my own listings -- last year I wanted to illustrate that the backyard of an Arden-Arcade home I listed was potentially big enough to build an Accessory Dwelling Unit. So I hired someone to add a rendering of an ADU to one of the aerial drone images my professional photographer took. And they also happened to edit the grass to be more green (which I did not ask them to do but it sure made the photo look better!). I did add a disclaimer to the photo and include the original in the listing, however now in the future I would also want to add a disclosure to the image specifically noting it was digital altered. For what it is worth, I also added some virtual staging furniture to two rooms, and did disclose the images were altered and provided the originals, as you can see in the archived listing online. Was I required to by law at that time? No. But I have always felt transparency is better. And now everyone in California will have to disclose digital alterations.

For home buyers, this is a win. You’ll have clearer expectations before you ever step foot inside a home. If a listing photo has been digitally altered, you’ll know it, and you’ll also have access to the original, unaltered images. Fewer surprises means better decision-making, less frustration, and hopefully fewer “Wait… where did that go?” moments during showings. 

For home sellers, this law encourages transparency without taking away great marketing. Virtual staging and enhanced photos can still be used -- they just need to be clearly labeled. Trust me seller, you want to avoid buyer disappointment when they walk in the door. That can leave a bad taste in a buyer's mouth...you want a buyer to connect with your home, not be frustrated by a big letdown or upset expectations. 

Real estate is already emotional enough for buyers without feeling catfished by a listing photo. This new law will help keep expectations realistic.