Virtual Staging in 2026: New Rules, New Risks, Smarter Strategies
- alang4hire
- 4 days ago
- 4 min read
What Is California AB 723 and Why Is Everyone Talking About It?
Virtual staging and AI edits are transforming real estate marketing in 2026—but responsible, human-led staging is still essential.
If you’ve noticed growing conversations around AI-edited real estate photos, virtual staging rules, and what’s actually allowed in property marketing, you’re not imagining it. A major shift is underway.
Beginning January 1, 2026, California will enforce AB 723, a law that makes improper use of digitally altered real estate images a potential criminal offense. While this law currently applies only to California, other states are already closely watching and are likely to follow suit.
If you market homes in Oregon or Washington, this matters. Not because you need to panic, but because real estate photography and virtual staging are entering a new era of transparency.
At Bridge City Staging, our personal touch isn’t just a philosophy. It’s protection.
What Is California AB 723?
California AB 723 regulates the use of digitally altered images in real estate marketing. Any photo modified using photo editing software or AI to add, remove, or change elements of a property falls under the law.
This includes:
Virtual staging and furniture
Fixtures and appliances
Flooring, walls, and paint colors
Landscaping and exterior features
Views through windows and neighboring properties
Sky swaps and faux twilight photos
If an image changes how a buyer perceives a property, it requires disclosure.
Importantly, this law applies to all marketing, not just the MLS, including social media, print materials, websites, and digital ads.
What Edits Are Still Allowed?
Standard real estate photo edits remain safe, as long as they don’t misrepresent the property. Professional photo enhancement is still business as usual.
These commonly accepted edits include:
Lighting and exposure corrections
White balance and color correction
Sharpening
Cropping and straightening
As AI becomes more accessible, virtual staging rules 2026 are forcing agents, photographers, and marketers to rethink how images are created, edited, and disclosed. What once felt like a creative choice is now a compliance decision, with real legal and MLS consequences attached.
New AI and photo editing laws require clear disclosure when images are digitally altered, protecting agents and buyers alike.
Disclosure Is Now Essential
Digitally altered images must include a clear disclosure that the image has been modified. In many cases, the original image must also be accessible. Failure to disclose properly can result in MLS fines and, in California, may also lead to criminal penalties.
Disclosure can be provided by:
Displaying original and edited images together
Allowing users to swipe between versions
Linking to originals via a labeled QR code or URL
Important note: The use of QR codes or URLs to link to original images is permitted under California’s AB 723. This disclosure method is specific to California and may not meet MLS requirements in Oregon or Washington.
Virtual Staging Rules in 2026: What AI and Disclosure Laws Mean for Agents
Not all AI tools are created equal.
Platforms such as ChatGPT image generation, Nano Banana, and similar generative AI tools often rebuild entire images, unintentionally altering structure, scale, or architectural features. Under AB 723, that can cross the line.
Fully generative AI tools can unintentionally:
Modify room proportions
Alter walls, windows, or ceilings
Change architectural features
If listing photos are being run through AI tools that “redo” the space, that’s a red flag and may put agents and brokerages at risk as regulations expand.
That’s why not all virtual staging is created equal.
At Bridge City Staging, virtual staging is done intentionally and conservatively. Furniture is added. Structure is preserved. The goal is enhancement, not reinvention.
Sky Swaps, Item Removal, and Faux Twilights
Even subtle edits require disclosure:
Sky swaps, even realistic ones
Item removal, such as vehicles or moving pods
Faux twilight images
These edits aren’t banned, but they now require added care and documentation.
At Bridge City Staging, every project combines human expertise with careful virtual staging to enhance listings responsibly.
How This Impacts Marketing Strategy
There’s no denying it. These requirements can complicate real estate marketing.
A dramatic twilight image loses some emotional impact when paired with a “digitally altered” label or QR code. In a world already fatigued by AI manipulation, some buyers react negatively the moment they see that language.
However, there’s a positive side. Buyers arrive with clearer expectations. Trust increases. The risk of disappointment decreases. The experience feels more honest.
That’s the true intent behind laws like AB 723: truth in real estate advertising.
How This Aligns With Oregon & Washington MLS Rules on Virtual Staging
While California’s AB 723 is new, Oregon MLS rules already reflect similar principles, and Washington follows Article 12 of the National Association of REALTORS Code of Ethics.
Most Oregon MLS systems, including RMLS and CVR MLS, allow virtual staging only when it adds or replaces personal property, such as furniture or décor, and does not alter the physical structure of the home. Structural changes, removal of permanent features, added views, or concealed defects may result in MLS violations.
Disclosure is already required. When photos are virtually staged or materially altered, listings must clearly indicate that fact, with labels such as “Virtually Staged.” Some MLS systems also require agents to retain original, unedited images for verification.
In many ways, AB 723 formalizes what Oregon and Washington agents have already been practicing, while expanding disclosure requirements beyond the MLS to all marketing channels, including social media and print.
If listing photos are being run through AI tools that “redo” the space, that’s a red flag and may put agents and brokerages at risk as regulations expand.
Why Bridge City Staging Is Ahead of the Changes
At Bridge City Staging, virtual staging isn’t about automation—it’s about doing it responsibly. Every project includes human oversight and thoughtful decisions:
Virtual staging is done with intention, not automation
Structure and scale are always respected
Edits are chosen strategically, not blindly
Guidance is provided on labeling and proper usage
No shortcuts. No black-box AI surprises
As regulations evolve, California has set a precedent, and other states will likely follow. Rules and best practices will continue to sharpen, and I will stay on top of these changes so you don’t have to. Real estate marketing is still about connection, clarity, and trust. In a world of AI and evolving rules, a personal touch is what keeps your listings compliant, compelling, and memorable.
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