In the context of real estate, housefishing is a type of real estate fraud that is also a deceptive real estate trend where a seller uses artificial intelligence (AI), trick photography, or heavy editing, to make a property appear much better online than it does in person. The word for this type of real estate scam is a play on the term catfishing, where an individual fakes their personal identity.
Instead of faking an individual, housefishing fakes a home. Housefishing can harm homebuyers in many different ways, including:
- Wasting time when an individual drives to see a home, only to find out it is in bad shape or cramped
- Losing trust in a listing agent or seller
- Heartbreak when the dream home presented online does not actually exist
What Are Some Common Examples of Housefishing?
There are several different examples of how housefishing can occur, such as:
- AI Staging: AI staging can change dynamics of rooms, such as adding tiny furniture to make a small room look larger.
- Curb Appeal Makeovers: AI can be used to add lush green grass, and landscaping that does not actually exist.
- Flaw Erasure: Cracks in the foundation, carpet stains, and holes in walls can be digitally removed.
- Strategic Cropping: Certain unfavorable aspects of the property can be removed, such as messy neighboring yards, ugly power lines, or busy traffic areas.
It is acceptable to remove flaws such as temporary clutter, including trash cans or children’s toys. It is also acceptable to change a sky from cloudy to a clear, blue sky.
AI-altered real estate photos issues related to internet fraud can also arise in many other ways, depending on the specific property at issue. There are ways an individual can spot housefishing, including:
- Checking the furniture to see if items look out of proportion or have strange shadows
- Looking at specific details, as AI may struggle with small details, such as wall outlets, light switches, and straight window frames
- Doing extra research, such as checking the property on Google Street View
There may be other issues with properties, such as fraudulent appraisals, that may arise when sellers and real estate agents are engaging in conduct such as housefishing or falsifying information related to a real estate transaction. A lawyer can help an individual watch for these issues and resolve them if they do occur.
What Are the Legal Consequences for Housefishing?
There can be various legal consequences for housefishing, such as a civil lawsuit for fraud, for example, an AI lawsuit, the loss of real estate licenses, and a voided sales contract. It is legal to engage in basic virtual staging, such as adding digital furniture to an empty room. However, digital altering can become illegal if it conceals permanent structural defects, stretches room proportions, or digitally removes eyesores, such as water stains and power lines.
Specifically, real estate professionals and sellers can face several legal and professional penalties, which may include fines for violating AI disclosures laws and statutory fines, civil lawsuits for fraud, and revocation of their professional license.
Who Can Be Held Liable for Housefishing Scams?
The parties that can be held liable for housefishing scams are typically real estate agents, sellers and landlords, and photography vendors. Two examples that carry a high probability of liability include erasing structural flaws and fabricating features of the home.
Erasing structural flaws may include hiding stains, foundation cracks, or mold. This may result in lawsuits for material misrepresentation and deceptive business practices.
Fabricating features may include adding features, such as extra windows, a deck, or a better view. This may result in immediate termination of the contract as well as financial damages.
What Should I Do if I Am a Victim of Housefishing?
If an individual is a victim of housefishing, they should document any misrepresentations, stop the transaction if it has not closed, and file formal complaints. It is important to take screenshots of the online listing, take photos during the in-person tour, and keep copies of any communications with the seller and real estate agent.
If an individual has not closed on the home yet, they should walk away from the deal and not sign any papers. An individual should request a professional and in-person inspection to uncover any hidden structural flaws. A buyer should ask for updated pricing or back out of the sale based on the misrepresentation if they are under contract.
An individual should report any deceptive marketing to their state’s Real Estate Commission or licensing board. They can file a fraud complaint with the Federal Trade Commission (FTC) online. They can also submit an ethics complaint against the listing agent through the National Association of Realtors (NAR) if the realtor is a member.
An attorney can help an individual determine the proper place to file a complaint as well as assist them with completing their complaint.
What Damages Can I Recover in a Real Estate Dispute?
In a real estate dispute, there are various types of damages an individual may be able to recover, such as compensatory damages or equitable remedies, depending on their specific losses and their contract. Compensatory damages are monetary damages that will cover someone’s direct financial losses related to the issue, such as repair costs or drops in property value.
Equitable remedies are not awarded as often in housefishing cases, but may be in certain situations. For example, if the parties have not yet signed a contract, the court may rescind the contract before or immediately after closing. This means that the contract is voided based on material misrepresentation or fraud.
In certain outrageous cases, punitive damages may be awarded to punish the offending party if the fraud was severe. In addition, if it was specified in the contract or applicable under state law, a party may be able to recover attorney’s fees.
How Can an Attorney Help Me if I’ve Been Scammed Due to Housefishing?
Attorneys, including AI disputes lawyers can help clients who have been scammed due to housefishing in many different ways. They can request an injunction to halt the property transaction.
A lawyer can file a lawsuit against all of the possible parties for monetary damages or other available damages based on the facts of the case and the laws of the jurisdiction.
A lawyer can also answer any other questions an individual may have related to a real estate transaction, such as what is a real estate agency.
Should I Hire a Lawyer for Help with a Housefishing Issue?
If you have any type of question or concern about housefishing or you think you may have been a victim of a housefishing scam, it is important to consult with a real estate lawyer as soon as you can. Your attorney will help you gather the necessary evidence to prove your claim, help you with any complaints you need to file, and fight for compensation for any losses you may have suffered.
If you are a home seller or a real estate agent who is facing housefishing accusations, it is also important to consult with an attorney, as you may face potential monetary consequences and the loss of your professional license.
Use LegalMatch to get started today finding a real estate attorney near you who can help resolve your housefishing issue or concern. It is free to use the lawyer-client matching services LegalMatch provides.
