Could ‘Listing Catfishing’ Laws Be Coming to Michigan? Here’s Why We Hope So

Problem: Listing catfishing causes expectation mismatch

Listing photos can be digitally altered. The property condition can be different in person.

This includes:

Virtual staging
AI enhancements
Defect removal
Feature addition or removal

This creates a mismatch. This increases fallout risk. This increases contract cancellations.

California Just Drew a Line in the Sand

Starting January 1, 2026, California is requiring disclosure when listing photos have been digitally altered or AI-edited. We’re talking about:

Virtual staging
AI enhancements
Removing defects from images
Adding or removing features

This is a big deal. It’s essentially saying, “Hey, you can still use these tools, but you have to tell people when you do.”

It’s common-sense consumer protection. And it’s about time.

Split-screen showing a Michigan home listing with edited photos versus the real property, highlighting listing catfishing.

So What About Michigan?

Michigan has not passed a similar law yet. There is no Michigan requirement for disclosure of AI-edited listing photos.

Brick Financial Group could get behind a law like this. We are a local michigan lender and it is our clients that get frustrated and value honesty and transparency as a core value.

The lender objective is certainty. The buyer needs certainty. The seller needs certainty.

The target state is simple:

Images match reality
Disclosures are clear
The property is market-ready

The Numbers Don’t Lie: Buyers Have the Upper Hand

If you’re a seller thinking, “What’s the big deal? Everyone edits their photos,” you might want to take a look at what’s actually happening in the market right now.

There are roughly 47% more sellers than buyers.

Read that again. That’s not a typo.

What does that mean for the homebuying process?

Buyers have leverage
Buyers have options
Buyers walk fast when expectations aren’t met

And here’s where it gets really interesting:

In December alone, approximately 40,000 U.S. home-purchase contracts were canceled. That’s 16.3% of homes that went under contract falling apart: the highest December cancellation rate since at least 2017, according to Redfin.

Balance scale with many seller homes and fewer Michigan home buyers, showing the 47% seller surplus in the housing market.

The Real Culprit? Expectation Mismatch

A huge driver of these cancellations is simple: expectation mismatch.

Photos don’t match reality. That “turnkey” listing isn’t actually turnkey. Buyers feel bait-and-switched, and they’re not afraid to walk away.

In Oakland real estate and across Michigan, we’re seeing this play out constantly. A buyer falls in love with the listing photos, gets excited, schedules a showing… and then reality hits. The house needs way more work than advertised. The “bright and airy” living room is actually dim with tiny windows. The “updated” kitchen still has appliances from 2003.

One bad showing can kill the entire deal. And in today’s market, that’s a risk sellers can’t afford to take.

The Smarter Move: Fix the Product

Requirement: Market-ready property condition

Digital edits do not fix condition. Digital edits create risk. Digital edits increase cancellations.

The required change is preparation. The required change is real work.

Seller actions:

Pre-sale preparation
Pre-sale renovations
Real staging
Defect correction
Documented disclosures

Outcome:

Less mismatch
Less fallout
More certainty

Magnifying glass reveals hidden defects in a Michigan property, underscoring why buyers need transparent home listings.

“But I Can’t Afford to Do That…”

Constraint: Upfront cash is limited

A seller may not have cash available. A seller still needs preparation.

Brick Financial Group is a Michigan-based lender in Oxford, Michigan. Brick Financial Group provides tools used for pre-listing preparation.

Products offered:

Bridge loans for pre-sale preparation and timing gaps
Pre-sale renovation financing to complete repairs and updates before listing
Cross-collateral options to use multiple properties for qualification and leverage

Result:

The home is actually market-ready
The listing matches the showing
Contract fallout is reduced

For estimates and scenario checks, use Check out a Renovation Value tool Here.

Renovation Call-Out: Cost vs Gain

Could your home use some renovations to sell for Top dollar? What would it cost and what could I expect to gain? Check out our Renovation calculator here: https://mykukun.com/dashboard?agent=679

Transparency Wins in 2026

A lot of homes are sitting stale right now. And it’s not always about price.

It’s because:

Buyers don’t trust what they’re seeing
Listings overpromise and underdeliver
The home isn’t truly market-ready

In today’s market:

Transparency wins
Turnkey wins
Certainty wins

Stop marketing harder. Start preparing smarter.

Worn house transforms into market-ready home, illustrating Michigan pre-sale renovations and quality improvement.

Why We’re Rooting for Michigan to Follow California

Michigan may or may not adopt a disclosure law. The lender position is support.

Reason:

Buyers need certainty
Sellers succeed through preparation
Digital tricks increase mismatch risk

Brick Financial Group is dedicated to transparency. Brick Financial Group supports clear disclosure.

Status:

Michigan-based lender in Oxford, Michigan
Voted Best Mortgage Lender in Oxford for 3 years in a row

Ready to Implement the Fix?

Action: Use transparent financing tools

Brick Financial Group provides lender solutions for market-ready listings.
Brick Financial Group provides lender solutions for market-ready listings.

Use:

Bridge loans
Pre-sale renovation financing
Cross-collateral options

Primary site: https://brickfg.com

If they are lying in the pictures where else are they not being truthful?