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.
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 .