Sellers are using smart cameras to eavesdrop on homebuyers - but listening in comes with risks

Key Points:

• A recent LendingTree survey reveals that 72% of recent homebuyers have seen or suspected recording devices during home tours, while 56% of sellers admitted to using such devices, often to monitor buyer reactions and interest.
• Although security cameras are legal for property protection, recording audio without consent may violate laws and real estate ethics, leading some brokerages to require sellers to agree not to eavesdrop during showings.
• The presence of recording devices affects buyer behavior, with many avoiding discussing offer strategies or showing enthusiasm, and 19% of buyers leaving showings due to discomfort from being watched.
• Sellers using surveillance sometimes hear negative feedback that can hurt their feelings or impact negotiations, and recordings have occasionally led to deals falling through when buyers made disparaging comments overheard by sellers.
• Real estate experts advise buyers to assume they are being recorded during showings and to carefully control their comments, especially regarding financial details, to avoid weakening their negotiating position.