California AB 723: What San Diego Home Sellers Need to Know About Digitally Altered Listing Photos

If you have browsed online listings recently, you have probably noticed that many homes look immaculate. Flawless green lawns, empty countertops, bright blue skies through every window. But here is the question that matters: does the home actually look that way, or was the photo edited to make it appear that way? As of 2026, California has a new law that requires sellers and agents to tell you the answer.

California Assembly Bill 723, known as AB 723, took effect on January 1, 2026, and it is changing how real estate listings present homes across San Diego County. As an agent with 18+ years of experience and someone who has worked extensively with contractors, stagers, and marketing professionals, I can tell you that this law is a step in the right direction for transparency. But it also creates new considerations for sellers thinking about how to present their home. Let me walk you through what AB 723 means, how it affects your listing, and what you should know before putting your home on the market.

What Exactly Is AB 723?

AB 723 requires that any listing photograph that has been digitally altered or generated by artificial intelligence must include a clear disclosure statement. The law covers images where digital editing has been used to change the appearance of the property in a way that a buyer could not reasonably see during an in-person showing. This includes virtual staging where furniture is digitally added to an empty room, sky replacements that swap out overcast weather for a bright blue sky, digitally added landscaping, or AI-generated images that create a version of a room that does not actually exist in the home.

The law does not apply to standard photography edits like brightness adjustments, color correction, cropping, or lens distortion correction. Those are considered normal photo editing. The line is drawn where the edit changes the property itself: adding a deck that is not there, removing power lines, or showing a fully furnished room that is actually empty.

When a listing includes altered images, the disclosure must be clearly visible on the listing, and it must include either a link or a QR code that directs prospective buyers to the original, unaltered images. The idea is straightforward: give buyers the information they need to make an informed decision before they schedule a showing.

Why Does This Matter for San Diego Sellers?

San Diego is one of the most competitive real estate markets in the country, and presentation has always been critical. Virtual staging and AI-enhanced photography have become increasingly popular tools for helping buyers visualize a home's potential. And honestly, when used ethically, they are valuable tools. I have seen empty condos in Mission Valley and empty fixer-uppers in North Park sell faster because virtual staging helped buyers see what the space could become.

But there is a line between helping a buyer visualize potential and misleading them. And AB 723 draws that line in a way that benefits everyone. Buyers get a more honest picture of what they are walking into. Sellers get credit for transparency. And agents have clear guidelines for what is acceptable and what requires disclosure.

In my experience, the best transactions are built on trust. When a buyer walks into a home and finds it exactly as it appeared online, that is the foundation of a smooth transaction. When they walk in and the home looks completely different, it creates friction, suspicion, and often leads to a deal falling through. AB 723 reduces that friction by making the disclosure upfront rather than leaving it to chance.

The Practical Impact: What Changes for Your Listing

If you are planning to sell your San Diego home this year, here is what AB 723 means for your marketing strategy.

Virtual staging is still allowed, but it must be disclosed. This is the most common application of the law. If your home is vacant and your agent plans to use virtually staged images, those images must carry a disclosure label. Some MLS platforms have already built fields for this. Others are updating their rules. As a seller, you should confirm with your agent that your listing complies.

Sky replacements and seasonal touch-ups need disclosure. If you photographed your home in February with gray skies and rain clouds, and an editor replaces that sky with a bright summer blue, that is considered a digitally altered image. The same applies to adding green grass to a dormant winter lawn or removing leaf clutter from a gutter line. These are cosmetic edits that change how the property appears relative to its actual condition at the time of the listing.

AI-generated images of rooms that do not exist are not allowed without disclosure. This is the frontier. Some platforms now allow a listing agent to upload photos of an empty room and generate a hyper-realistic version of that room with furniture, decor, lighting, and even different wall colors using AI. Under AB 723, these images must be disclosed, and the original must be available for comparison.

Standard photography is unaffected. Professional real estate photography remains an essential investment for any listing. Good lighting, proper staging, thoughtful composition, and professional editing within the bounds of brightness, contrast, and color correction are all still standard practice. The law only targets edits that would materially mislead a buyer about the condition or features of the property.

A Note on Enforcement and Best Practices

Enforcement of AB 723 primarily falls to the California Department of Real Estate and local MLS authorities. The law does not create a private right of action for buyers to sue over non-disclosure, but it does create grounds for disciplinary action against licensees who violate the rule, and it creates potential liability under existing fraud and misrepresentation laws. In short, the consequences for ignoring AB 723 can include fines, license discipline, and increased exposure to litigation from a buyer who feels misled.

For sellers, the practical takeaway is simple: work with an agent who understands the law and is transparent about how your listing is being marketed. A reputable agent will have clear policies on virtual staging, know how to properly disclose altered images, and ensure your MLS listings comply with both state law and local MLS rules. If you are working with someone who brushes off the requirement or says it does not apply to their process, that is a red flag.

As someone who has overseen countless home preparations and worked alongside stagers, photographers, and contractors, I can tell you that honest presentation is always the winning strategy. The goal is not to make your home look like something it is not. The goal is to present your home in its best light while letting buyers know exactly what they will find when they walk through the door. That builds trust. Trust gets offers accepted. And trust is what leads to referrals and repeat clients down the road.

Where Are You Headed Next?

Whether you are preparing to sell your home in San Diego this fall or just starting to think about what the process looks like, understanding the legal landscape is part of being prepared. AB 723 is one of several new California real estate laws this year that affect how homes are marketed and sold. The good news is that none of them are difficult to navigate when you have the right guidance.

What is important to you? Maybe it is getting top dollar for your home while maintaining transparency with buyers. Maybe it is selling quickly because you are facing a relocation, a change in family circumstances, or a financial decision that requires a clean and timely close. Maybe you are just beginning to explore what your home is worth and what selling would look like in today's market. Wherever you are in that journey, I would love to help.

If you have questions about AB 723 or any aspect of preparing your home for sale, let us talk. I have been guiding San Diego homeowners through complex real estate decisions for over 18 years, and I bring the same commitment to every conversation: clear facts, honest guidance, and a focus on what matters most to you. My Selling Guide walks through the entire process from pricing and preparation to negotiation and closing. And if you are curious about the broader landscape of new California housing laws, this post covers the other major changes taking effect this year.

Where are you headed next? Let us figure it out together.

In service, Hanna