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Do it Yourself or Hire a Contractor?

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Managing Real Estate Broker with Help-U-Sell Realty Pro 17676

The State of Hawaii has strict rules regarding renovation of real property.  A building permit is required if the cost or addition/renovation is over $1000 including materials and labor.  Any work that would normally require a building permit such as a retaining wall, plumbing or electrical renovations must be performed by a licensed contractor.

There is a provision for an owner to act as his own contractor. Owner Builders have thier own set of rules to follow.   More information will be provided in my next blog so check back.

You may be able to hire a contractor who specializes, like a painter but if your project requires several disciplines you will probably have to hire a general contractor.  Look for a license code "B" next to their license number as this denotes a general contractor.

Be sure to check the status of the license of any one claiming to be a contractor and the type of license they hold, i.e. General Contractor or Specialty Contractor.  This is easily done by going to the website of the Department of Commerce & Consumer Affairs aka DCCA.  www.businesscheck.hawaii.gov

Be sure to keep copies of all contracts, license numbers and checks written.  You will need to provide these when it's time to sell your home.

Maureen

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Show All Comments Sort:
Catherine Ulrey
Keller Williams Capital City - Salem, OR
Equestrian and Acreage Property Specialist

Even if a seller is allowed to do work themselves, they often shouldn't.  Very few perform professional looking work.

Jan 03, 2011 04:05 PM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

Great information Maureen. So many owners there have these as second homes and many not be aware of local requirements.

Jan 03, 2011 04:06 PM
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon

Maureen:

THANKS for this information - I had no idea; also I've got a friend who will find this helpful!

Jan 03, 2011 05:36 PM
Linda D. Pufford
Stage with Divine Style - Home Staging - Novato, CA
ASPM, Marin/Sonoma Home Stager

Maureen,

This is really great information to have on hand.  What great advise to give to sellers ahead of time.  Thanks for sharing this.

Jan 03, 2011 06:43 PM
John McCarthy
North Hampton, NH
Realtor - Seacoast NH

Hi Maureen,

All good points. How to select a contractor is an important part of this process. Get referrals from family and friends you trust who have had direct experience with a contractor...and above ALL else, get a Job Specific certificate of insurance naming you as additional insured. Just like real estate...get the deed, get the deed, get the deed...read the deed, read the deed, read the deed. Make sure the policy is current and the limits of coverage are reasonable. Failure to verify the contractor's insurance can cost you your home in the event of an accident on your property.

Jan 03, 2011 09:12 PM
Maureen Fukumoto
Help-U-Sell Realty Pro - Mililani, HI
Maureen

Catherine, Very true, I suppose I could write a blog or two about what I've seen.

Vickie, I never thought of that.  My town doesn't have many 2nd home owners but I sure wouldn't mind expanding into that market.

Ellen, You're welcome. I'll be posting more information on the topic. Right now, I am struggling to keep up with writing each day but I'm starting to get the hang of it.

Linda,  Thanks for taking the time to read it.

Jan 04, 2011 05:54 AM
Maureen Fukumoto
Help-U-Sell Realty Pro - Mililani, HI
Maureen

John, Keeping a copy of the job specific insurance certificate is an excellent idea, as is the reminder to be named as additional insured.

Jan 04, 2011 05:57 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Maureen, there's usually a very good reason for the strict rules. Someone down the line could get hurt if the work isn't done correctly.

Jan 05, 2011 09:49 AM
Maureen Fukumoto
Help-U-Sell Realty Pro - Mililani, HI
Maureen

Absolutely, especially when it comes to electrical and actual construction. Unfortunately, $1000 won't even paint your house in Hawaii so it's paint it yourself or hire a licensed contractor.  Other minor cosmetic repairs like replacing closet doors fall into the same category.  Most people hire handymen without understanding the dollar limits.

Thanks for suggesting the challenge.  I'm enjoying it.

Jan 05, 2011 03:08 PM