About two years ago, I helped a buyer purchase a fix and flip home. The Seller of the home was a licensed real estate agent. Most of the remodel work was done by an unlicensed handyman and the Seller himself.
Quick "two cents" about a licensed Realtor doing fix and flips - s/he should know better - or at least know the rules about hiring hanymen here in Tucson. Here are those rules:
There are limitations in place when you use a handyman to fix a property. First, the amount paid to the handyman cannot exceed $1,000. And that $1,000 has to include labor, materials and all other items associated with the job. Statute does exclude from the $1,000 amount anything which can be plugged in to a regular two-pronged or three-pronged electrical outlet so long as the item doesn’t use another form of energy (like gas). Also exempt from the $1,000 limit are items that are attached by a nail, screw or other “fastening device.” The handyman exemption in statute does give additional leeway in some circumstances; but be aware that the exemption doesn’t apply if a local building permit is required, or if the work to be done is part of a larger project or a major operation. (Additional rules require unlicensed handyman to state "not a licensed handyman" in their advertisement.)
About 2 months after the buyers moved in - many things started to go wrong. Many of them, major. Of course the first person they call - is their real estate agent! We went to the Seller asking him to honor his warranty but use a licensed person. There was resistance of course - which resulted in two phone calls - one to the agents Broker, and one to the AZ Contractors office.
What the agent saved by not following rules - ended up costing him more in the end when he had to write a sizeable check to the Buyers.
Handyman rules apply to us all - agent or not - so keep these in mind when you are hiring someone to work on your home.
Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .
This blog is written with my opinions and my opinions are presented with
accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions. Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .