How AI Virtual Staging Has Changed the Mechanics of Real Estate Marketing

NEW YORK, Sept. 3, 2025 – The power of Artificial Intelligence (AI) has been felt in almost all creative sectors including digital marketing and advertising. Film making and content creation too have experienced the impact of AI. The way AI has left an indelible mark on real estate has made virtual staging a trend setter for this industry.

AI-generated real estate photos, essentially comprising of glossy images and sharply-edited videos of properties have been attracting buyers but what has stirred a debate is the way brokers use generative AI to showcase properties that fabricates its features.

Real estate agents in the US have established consulting businesses that are predominantly based on cloud and AI. Notably, there have been major acquisitions in the AI space such as the takeover of Virtual Staging AI (VSAI) by real estate major Zillow.

The acquisition will enable Zillow to leverage the technology that helps home sellers, agents and photographers in digital creation of images and videos that provide a guided tour of the properties to be sold.

Why are the Pros and Cons of Virtual Staging?

Property listing for decades has involved a tedious practice of renting furniture, hiring photographers and arranging logistics. Till recent past virtual staging was not a practically feasible option as it proved to be less cost-effective, time consuming and moreover presented an artificial outlook.

AI has changed that perspective, an example of which is the Silicon Valley-based startup Colloy AI that leverages proprietary model training to develop AI-powered tools for real estate professionals. Collov AI’s solution offers prompt results producing photorealistic quality and interactive editing. Tools such as “Chat Edit” enables agents to refine images with help of natural language prompts, swapping furniture styles and adjusting lighting or changing flooring within seconds, for which no design skill is needed.

On the flip side, both in the small as well as large real estate markets world-over, misrepresenting of properties by virtual staging has led to many litigations. The domain to solve these legal tangles rests with the real estate regulatory authorities but the customer claims of being deceived by agents often make it to the higher courts of justice.

Aspect of Visual Content in Realty You Should Know 

Video Dominates: Audio visual medium has always been a key aspect of property as buyers are always keen to see photos or videos of every aspect of a property, from the front yard to the tiny guest bathroom on the main floor. In 2025, brokers are relying on the power of videos and AI to sell homes, including virtual staging, a hotly debated tool. A few essential statistics reveal the power of visual content in 2025 as video dominated in 2025, with video listings boosting inquiries by 403 percent. Sixty one percent of real estate agents use drones to market their listings and among agents who use drones, 43 percent hire a professional to operate them. A market analysis has revealed that Collov AI received significantly more engagement across digital platforms.

One such case is a condo listing that had gone unnoticed but saw 72 percent spike in listing views and a 44 percent in qualified leads after virtual staging was applied.

As per RubyHome Luxury Real Estate, homes with professional photos sell 30 percent faster and receive nearly triple the inquiries, while 90 percent of buyers find listings with video tours more compelling, and 95 percent of buyers are more likely to call about those properties.

When looking at a home listing, buyers spend around 60 percent of their time looking at photos and only 20 percent on property descriptions. Sixty percent of buyers’ agents say virtual staging has an effect on some buyers, but not always.

Use of AI in Property Management: Use of AI is leading to success in many sectors, and the real estate industry is too is benefitting from it. AI has forayed into an untapped segment of business and led to a transformation in the real estate sector, reveals a JLL report.

With its unique capabilities to redefine the way how we buy, sell, and invest in properties, AI is spearheading a paradigm shift in the landscape of property ownership and rental living ecosystems. The future of real estate by all means majorly relies on AI solutions as this intelligent system has made property management more efficient, streamlined, personalized, and customer-centric. AI in real estate industry is drastically bringing transformation by automating processes, enhancing customer experiences, increasing productivity, and providing valuable insights for better decision-making, reshaping our interactions with the real estate market.

With AI-driven visuals and video tours, property marketing is becoming faster, more engaging, and increasingly precise, while raising questions about authenticity and trust.

Inputs from Saqib Malik

Editing by David Ryder