Big Brother Isn't Just Watching...He's Listening...

Home security cameras raise privacy issues in real estate transactions.

Big brother isn’t just watching…he’s listening, too.  And if homebuyers today aren’t careful about what they say, it could end up costing them – big time!

If you don’t already own any home security cameras and other smart gadgets, you’re probably familiar with them.  Many of the videos that they record, from criminal activity to hilarious incidents, are posted on social media, and some go viral.  The cameras have come a long way indeed.  They’re cheap, they’re wireless, and they record extremely high-quality footage.  While such cameras are an excellent way to protect your home – or become an overnight YouTube sensation – potential homebuyers need to exercise caution and be aware.

A SHOCKING REVELATION

As the owner of a relocation company operating both in the U.S. and overseas, I’m often asked to speak at real estate events or present to real estate agents.  Following a recent presentation, I stayed behind to speak with a few of the agents.  I expected to discuss market trends and various related topics, but instead I learned things that shocked me.

A real estate agent mentioned a client’s use of security cameras to “monitor” would-be buyers as they toured her home alongside their agents.  The client prefaced the request with the statement that it was to ensure all parties had removed their shoes.  In reality, the homeowner would learn in the process what buyers had to say about her home, whether they planned to make an offer, what it would be, and in some cases, what the buyer would actually pay after negotiations.

Concerned about ethical practices, this real estate agent informed her client that she did not want to be privy to any of this detail.  But it made her wonder how common such practices were and whether other agents would adhere to a similar course of action if confronted with them.

In this particular case, the seller agreed to stop monitoring the captured footage immediately.  And it’s worth noting that the proper signage was posted around her home, disclosing video and audio surveillance.  What was more shocking was the fact that every real estate agent in the group nodded their head and confirmed that they had all had similar experiences at some point.

A NEW ERA

Surveillance laws vary state-to-state.  In its 2018 Video and Audio Surveillance State Law Survey, the national Association of Realtors (NAR) notes, “Of the 51 jurisdictions surveyed, only Vermont has no statutory provision governing the recording of oral conversations.  All of the jurisdictions in some respect control the visual recording of persons and/or places in specified circumstances.”

This discussion by the real estate agents was eye-opening – and scary!  It made me realize that we’ve entered into a new era in the real estate industry.  We need to closely investigate and further explore the implications.  May other smart devices perhaps relay potential sales opportunities to mortgage lenders?  Or moving companies?

Fifty-four million Americans have monitoring systems in their home.  According to a 31 January 2019 Forbes article by TJ McCue, “Home Security Cameras Market to Surpass $9.7 Billion by 2023,” that number is predicted to exceed 120 million by 2023.  Cameras currently on the market are wireless and inexpensive, with exceptional video and audio quality.  They can be placed inside or outside a home.  In fact, if you don’t look for them, you’ll likely never even know they are there.  And even if you notice a security camera, we’ve become so desensitized to their presence, your eyes may simply glide past them.  To most, security cameras exist solely to protect against criminal activity.  Buyers now require an education on this new trend regarding security camera-equipped homes.

AN OBLIGATION TO PROTECT PRIVACY

Those of us in the talent mobility profession have an obligation to share our knowledge and expertise and to advocate for our clients and their transferees by furnishing them with information about emerging trends and best practices as we become aware of them.  We strive to ensure they remain educated on all aspects of their relocation, so that it’s not only a success, but also creates minimal stress.

Our clients deserve to purchase a home at the best price and feel comfortable knowing that their privacy is protected.  And when it comes to confidential discussions, we remind them to always wait until after the showing.

So, the next time you’re tempted to profess love for a kitchen or giggle over a homeowner’s eccentric design, you may want to refrain until you’re back inside the privacy of your real estate agent’s vehicle.  You never know who’s observing…

Article taken from Mobility magazine December 2019.  By Bill Mulholland, SCRP, GMS