Quick answer
Virtual staging is legal. However, real estate guidelines in most regions require you to disclose that an image has been virtually staged, and you must never digitally alter or hide a property’s actual physical condition (for example, covering damage). Add furniture, not deception.
It is acceptable to add furniture and décor that help a buyer visualize a space. It is not acceptable to use editing to conceal defects, alter the structure, or misrepresent what the buyer will actually receive. The first is marketing; the second can be considered misleading.
Best practice is to label staged images clearly — for instance, “Virtually staged” on or beside the photo — and to include unedited photos of the same rooms so buyers can see the true condition.
Rules vary by country, state, and local board, so always confirm your specific obligations. StagingReel makes it easy to add a disclosure label to staged output.