Misleading AI-edited listing photos risk violating MLS rules and legal regulations, leading to flagged listings or penalties. They cause buyer distrust, increased cancellations after showings, and damage an agent’s reputation. Altering permanent features like windows or room dimensions can be considered false advertising. The resulting loss of credibility slows sales and may expose agents to lawsuits. Honest use of AI photo enhancements coupled with full disclosure avoids these risks and supports successful, trustworthy marketing that attracts qualified buyers.