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The risks of marketing real estate on social media

Mar 16, 2026
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Real estate agents are embracing social media for marketing property, but there are risks too.

Social media platforms are transforming the way homes are marketed and sold, offering cheaper and more targeted advertising options while introducing new risks for buyers and sellers.

For decades, property marketing followed a familiar model: broadcast a listing through newspapers, television ads, posters or front-yard signboards and hope to attract the right buyer. Even the emergence of major online listing platforms did not fundamentally change that approach.

Social media, however, has altered the landscape. Algorithms can now identify prospective buyers based on their online behaviour and deliver property content directly to them, sometimes before they have even begun actively searching for a home. The shift has also enabled some homeowners to market properties themselves, bypassing real estate agents entirely.

Selling in the social era

The use of social media in Australian property sales is relatively recent. In 2015, Sydney-based real estate agent Nic Fren reportedly became the first in the country to list and sell a property exclusively on Facebook.

Traditional advertising channels typically involve dealing with a “gatekeeper”. Listing a property on major real estate websites is permission-based, requiring adherence to platform rules and payment of significant fees.

Advertising costs on Australia’s largest property platforms are among the highest globally, with both increasing prices substantially over the past five years.

By contrast, social media is decentralised and generally free to use. Combined with the ability to reach wide audiences, this makes it an attractive option for agents and individual sellers. For those pursuing for-sale-by-owner strategies, social media offers a low-cost way to generate exposure.

Building personal brands

Beyond property promotion, social media has allowed real estate agents to cultivate relationships with potential clients and build trust over time. This contributes to their social capital, as agents increasingly use content to educate and entertain audiences rather than simply advertise listings.

Some have leveraged this approach to develop “celebrity-like” personal brands, expanding their market share even when they do not have active properties to sell. Such content can attract attention during casual browsing, potentially influencing buyers’ choices later when they enter the market.

Amplifying exposure

International research has begun to examine social media’s influence on property transactions. A study in the United States found that metrics such as total Facebook likes, links shared and stories posted were positively associated with real estate sales in Orange County, California.

Most brokers continue to use social media alongside traditional listing platforms rather than replacing them. However, some observers suggest the platforms could eventually become direct competitors, with even Facebook Marketplace challenging established online marketplaces.

There are already reports of properties being sold after being advertised solely through social media channels.

On platforms such as TikTok, algorithm-driven distribution means accounts with relatively small followings can still reach large audiences. With younger consumers increasingly encountering property content on social media first, the platforms are becoming an early touchpoint in the home-buying journey.

Emerging risks

The decentralised nature of social media marketing also removes some of the safeguards associated with centralised listing platforms, meaning buyers may need to take additional steps to verify property details and guard against scams.

The risk of misleading advertisements or listings for non-existent properties may be heightened in this environment. Australians lost A$43.2 million to property scams in 2024, up from $13 million three years earlier.

Common schemes include fake listings and fraudulent settlement scams, which involve tricking buyers into transferring funds to impersonated accounts.

Navigating AI in property marketing

Artificial intelligence is adding further complexity to the sector. Increasingly, AI tools are being used to generate marketing content such as listing descriptions. In the United States, nearly half (46%) of realtors who belong to the National Association of Realtors report using AI for this purpose.

However, concerns remain about how to deploy the technology without creating new risks for buyers. One issue is the potential for “hallucinations”, where AI-generated descriptions contain significant inaccuracies.

Another emerging trend is the use of AI to create hyper-realistic marketing images. Critics warn that such visuals could misrepresent properties, though the extent to which they influence buyer behaviour is still unclear.

As social media and AI continue to reshape property marketing, industry participants and regulators alike face the challenge of balancing innovation with consumer protection.

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