Buyer beware! This old saying normally applies to functional deficits in the house, but in this case it applies to what you are saying and doing on your home tours…
Are you buying a house and have you been visiting homes and open houses? Watch what you are saying and doing inside the home, because sellers may be watching you!
A growing number of home sellers are using security cameras and microphones to spy on potential buyers as they look through their homes for sale. The sellers may then use what they hear or see as leverage in price negotiations.
The spread of inexpensive cameras and mics that homeowners can buy and set up themselves is fueling this trend. Sensors can notify the sellers by text or email that a visitor is in their house. The sellers can then observe a prospective buyer and their agent on their computer or phone, or choose to play a recording at a later time.
USA Today reports that in a survey conducted by Harris Poll for NerdWallet this month, 15% of Americans who have ever sold a home said they’ve used surveillance cameras to monitor potential buyers. And 67% say they would use such cameras if they were selling a home that already had them. About 9.4 million U.S. homes, or 7.4% of the total, are equipped with Wi-Fi enabled cameras and mics, says Brad Russell, research director for Parks Associates, a consumer technology research firm. As many as 11 million or so have similar but more limited set-ups trained on the doorstep or outside the house, or embedded in a light fixture, Russell says. That means up to 13% of homes have at least one Wi-Fi camera and mic. The cameras often are visible but can be hidden in stuffed animals, like a “nanny cam,” or concealed in bookshelves.
How does this effect your potential home purchase? You may be giving away too much information to the sellers. If you are gushing over how perfect the home is, and what you are willing to pay for it, the sellers can use this information during the negotiations. At the same time, you may cause a seller to dislike you if you mention not liking features or personal items in the house that are very meaningful to the sellers. Either way, you never want to give any sort of personal information to sellers or their listing agent, so it’s best to just pretend you are with the sellers inside the home at all times.
Of course this spying also creates a whole set of privacy issues. If you are a home seller and you intend to use a camera within your home while it is listed on the market, you may be well advised to confirm the legality of you recording your potential home buyers, to disclose the recording to your agent, and to post a prominent sign (or signs) at the home’s entrance(s) informing buyers that there is a home video surveillance system. That way, at least they can’t claim they didn’t know that they were being recorded later on.
CresInsurance.com explains that another way to look at this is to say by entering the home knowing that cameras would be recording the buyer’s movements, the buyer has no reasonable expectation of privacy while in the home. However, there are limits to this concept. Even if the seller posts signs warning buyers that cameras are in use, a buyer likely would not expect recording while in a bathroom. In other words, buyers would have a reasonable expectation of privacy while in a bathroom.
In summary, A good rule of thumb for buyers and their agents is that regardless of whether there are any signs, they should assume that there may be recording or video systems operating, and they should not say or do anything that they would not want the seller or listing agent to see or hear. There is little downside to such a strategy. They should make a point of having private conversations only when they absolutely know that they have privacy – typically outside the home in the agent’s car or office.
About Jaleesa Peluso, Laguna Beach Realtor & Certified International Property Specialist
Jaleesa and her team specialize in representing local as well as foreign buyers and sellers of Orange County real estate. Are you considering leasing, buying or selling your Orange County home? Call us now at (949)395-0960!