Buyers may know not to criticize a seller’s decorating choices during a home tour. They may be less careful about discussing how much they can afford, how badly they want the house, or how much additional cash they could bring to the closing table.
With recording devices operating during more than half of recent home sales, loan officers may want to add another warning to their purchase-market playbook: Assume someone can hear you during a showing.
A new LendingTree survey found that 56% of consumers who sold a home within the past five years kept recording devices active during their most recent sale or listing. Nearly three-quarters of recent buyers, or 72%, said they had seen or suspected cameras, microphones, or other recording devices during a home tour.
The survey also found that recording concerns are changing buyer behavior, influencing seller decisions, and, in some cases, determining whether buyers submit an offer.
For LOs, the findings present a purchase-coaching opportunity. Borrowers who casually reveal their approval limit, available cash, need for concessions, or ability to cover an appraisal gap could weaken their negotiating position before an offer is submitted.
Surveillance Can Become Negotiating Intelligence
More than 1 in 5 recent buyers, or 22%, avoided discussing their budget or offer strategy because they were concerned about being recorded. The same percentage concealed their excitement about a property, while 21% avoided discussing what they disliked.
Those concerns are not unfounded. Among the 89 recent sellers surveyed who kept recording devices active, 18% said they used the equipment to gather information that could help during negotiations. Another 18% wanted to determine how interested buyers appeared, while 19% used recordings to learn what buyers liked or disliked about the property.
More than 8 in 10 of those sellers reviewed recordings after showings. Nearly half, or 45%, said what they observed influenced negotiations. Another 43% said recordings affected repairs or staging, while 35% said the information influenced pricing.
Because those findings are based on only 89 sellers with active recording devices, the percentages should be interpreted cautiously. They nevertheless show how information disclosed during a tour could reach the seller and potentially affect the transaction.
That information could go well beyond whether buyers like the kitchen.
A borrower might disclose the maximum amount listed on a preapproval letter, the additional cash available above the planned down payment, or a willingness to cover an appraisal gap. Buyers might also discuss their need for seller-paid closing costs, a temporary rate buydown, or repairs required for a particular loan program.
Other comments could reveal urgency. A buyer might mention an expiring lease, a pending home sale, a relocation deadline, or a previous offer that fell through. Even saying, “We can’t lose this house,” could signal that the buyer has less negotiating leverage than the offer suggests.
Security Or Surveillance?
Most sellers with active recording devices cited reasons unrelated to negotiations.
Among the 89 sellers, 61% said they used recording equipment to monitor a vacant property, 43% wanted to protect the home or valuables, and 42% wanted to know who entered the property. Other sellers cited insurance or security requirements, monitoring pets or deliveries, and simply leaving devices operating because they were normally turned on.
Most also said buyers received some warning. Among sellers who kept recording devices active, 85% said buyers were told the equipment might be operating, and 82% described the devices as at least somewhat obvious.
Still, 64% of recent buyers said they were concerned about sellers watching, listening to, or recording them during tours.
Matt Schulz, LendingTree’s chief consumer finance analyst, said sellers often view cameras as security, while buyers experience them as surveillance. His advice to buyers was direct: “Assume you’re on camera the moment you walk through the front door.”
The widespread presence of home cameras reinforces that warning. A separate 2026 SafeHome.org survey of 2,435 U.S. adults estimated that 61% of households have at least one security camera, up from 52% in 2024 and 42% in 2023. Nearly half, or 48%, have a video doorbell.
Those figures do not indicate how many homeowners record buyers during showings. They do suggest that buyers are increasingly likely to tour properties where cameras and microphones are already installed.
A Purchase-Coaching Opportunity For LOs
Loan officers already prepare borrowers to avoid major credit purchases, job changes, unexplained deposits, and other financial moves that could disrupt an approval. Surveillance during showings presents a different kind of risk, but one that can still affect the borrower’s offer, financing, and ability to close.
A seller who overhears that buyers have room beneath their approval ceiling may be less inclined to accept a lower offer. Learning that buyers need a closing-cost concession could influence how a counteroffer is structured. Hearing that buyers could increase their down payment or receive gift funds might also affect negotiations over price, repairs, or an appraisal shortfall.
LOs do not ordinarily attend home tours, but they can address the risk before borrowers begin shopping. A short warning during the preapproval conversation could prevent buyers from disclosing information that should remain between them, their agent, and their lender.
LOs can advise borrowers not to discuss the following inside a listed property:
- Their maximum approval amount or purchasing limit
- The amount of cash available for the transaction
- Their ability to increase the down payment
- Gift funds or other financial help from relatives
- Their comfort with a higher monthly payment
- The need for seller credits or a rate buydown
- Their ability to cover an appraisal gap
- Their willingness to waive contingencies
- An expiring lease, relocation date, or other deadline
- How strongly they feel about the property
Sensitive conversations should wait until the buyer and agent have left the property, including the driveway and the potential range of exterior cameras or video doorbells.
LOs can also coordinate that guidance with buyers’ agents. The objective is not to direct the real estate negotiation, but to protect borrowers’ financial information and preserve their options when an offer is structured.
Recordings Can Cost Sellers Offers
Recording equipment does not merely change what buyers say. It can also determine whether they proceed with a purchase.
LendingTree found that 19% of recent buyers had left a showing because of recording devices, while 18% decided not to submit an offer. Across all respondents, 34% said knowing recording equipment was used during a showing would make them less likely to make an offer.
The response was more mixed when consumers were asked about secret recordings. Nearly a quarter, or 24%, said discovering that they had been secretly recorded would not change their willingness to consider the home. Another 17% would still consider buying it but would trust the seller less.
Schulz advised buyers not to let the temporary discomfort of cameras outweigh the long-term suitability of a property. Buyers who feel uncomfortable can keep the tour brief, evaluate the house, and discuss their reactions and negotiating strategy elsewhere.
Audio And Video Laws Differ
The legality of home surveillance varies by jurisdiction and can depend on whether a device captures video, audio, or both.
The National Association of Realtors (NAR) said in April that disclosure requirements differ by state and local law, particularly when audio is involved. NAR recommended informing visitors when smart devices are present and cautioning them against holding private conversations inside the property.
Video recording is generally treated differently from audio interception, although privacy restrictions still apply. Cameras placed in locations where visitors would reasonably expect privacy can create additional legal concerns.
The North Carolina Real Estate Commission, for example, says a seller may record video inside a property if the camera’s placement does not violate a visitor’s privacy. However, the commission says a seller cannot secretly listen to or record a conversation between a buyer and agent when the seller is not participating, and neither person has consented.
That guidance applies to North Carolina. Mortgage professionals, real estate agents, and sellers should consult applicable state law or legal counsel rather than assume the same rules apply nationwide.
For buyers, the practical advice is simpler: A camera may be obvious, hidden, disclosed, or unknown. The safest approach is to treat every showing as a public setting and save financial discussions for later.
*This article was primarily written by a human author. AI tools were used in a limited capacity for research assistance or light editing.
