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Should Home Sellers Be Allowed to Complete Repairs?

By
Real Estate Broker/Owner with Franklin Homes Realty LLC

Should Home Seller Be Allowed to Complete Repairs?Today, we received a repair request from the buyers of one of our listings. The house was built in 2010 so we knew there wouldn't be much, if anything, to do. As expected, the list consisted of a few handyman repairs; no plumbing, electrical, HVAC or roofing items.

Mr. Seller is quite handy and knew he could knock out these repairs in an hour or two. But wait...the buyer requested all repairs be completed by a licensed contractor.

I am all for licensed contractors completing roofing, HVAC, plumbing and electrical repairs but when a smoke detector needs to be replaced, it doesn't take a licensed contractor to do that. Additionally, handymen aren't licensed in Tennessee. That's right, a handyman is NOT required to be licensed in our state. Many times sellers are hiring handymen, thinking they are hiring a licensed contractor.

In Tennessee, if you want to hire a licensed handyman, he must either have a contractor's license or a home improvement license. Does it make sense to pay a licensed contractor who charges $150 an hour to change a smoke detector? Not to mention the fact that many licensed contractors with more advanced skills don't want to be doing handyman jobs.

What is the solution to this dilemma? Should handymen be required to become licensed? Or should home sellers be allowed to complete repairs? 

After contacting several licensed contractors, the sellers found that it would cost them about $500 - $750 to have this short list of items repaired. The contractors admitted that not knowing the scope of the work, they quoted the job high. They also said they were too busy to complete a job so small. They suggested calling a handyman.

We were back to our original dilemma. The buyer wanted a licensed contractor. Why pay a handyman who isn't licensed, to do a job the seller is perfectly capable of doing? Here's the solution we proposed: the sellers would complete all repairs. However, they would pay a home inspector $150 to re-inspect. This solution would assure the buyers that the work was completed and save the sellers about $350 to $600.

That solution seemed to satify the buyers and we're moving forward.

I will admit, not all sellers are qualified to do even the simplest of repairs. When you have someone who is very capable, it hardly makes sense to hire someone to do the work. Besides, I've seen some pretty shoddy work recently from hired handymen.

What are your thoughts? Should home sellers be allowed to complete repairs?

Posted by
Tammie White, Managing Broker/Owner
CLHMS, CRS, GRI, SFR
Franklin Homes Realty LLC
Franklin, TN
(615) 495-0752 
GET REAL. GET LOCAL.
 
This posting with the content written here and photographs displayed are the intellectual property and opinions of Tammie White of Franklin Homes Realty LLC. Any party who uses this material without the written permission of Tammie White is subject to copyright infringement and possible lawsuit.

Comments(27)

Kathy Streib
Cypress, TX
Home Stager/Redesign

Tammie- this is another reminder that real estate is local!  You came up with a good solution!

Oct 03, 2015 11:59 AM
Tammie White, Broker

Absolutely!

Oct 04, 2015 06:44 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign


                Thanks Tammie White for my ah-ha moment.

Oct 03, 2015 12:06 PM
Tammie White, Broker

Thanks so much Kathy. 

Oct 04, 2015 06:44 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It is always a good idea for home owners to take care of repairs before listing a house.

Oct 03, 2015 09:22 PM
Tammie White, Broker

Gita, here's the problem in having a pre-list home inspection--


It costs the sellers $350 to do that. I would rather they save themselves the money and put it towards repairs.

Oct 04, 2015 06:45 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Tammie. This is a tough one. I think the homeowner should have completed the repairs before the inspection when this wouldn't have been an issue.

Oct 03, 2015 11:21 PM
Tammie White, Broker

We didn't know what the repairs were until we had the inspection.

Oct 04, 2015 06:46 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Tammie White good topic.... with our listings, we have licensed tradesmen do the work .....we never want to hear about any of the issues in the future.... our contacts are very reasonably priced and do the jobs in their off time....

Oct 03, 2015 11:35 PM
Tammie White, Broker

As I mentioned, licensed contractors aren't willing to take on these small jobs. Handymen aren't licensed. It puts us between a rock and a hard place.

Oct 04, 2015 06:47 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  Glad I didnt miss it thanks to Kathy's summary this week!

Oct 04, 2015 12:17 AM
Tammie White, Broker

She's great.

Oct 04, 2015 06:47 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I can understand the buyers wanting a professional doing the repairs, but I would have thought some exceptions could have been made for things like the smoke detector.

You came up with a great solution!

Oct 04, 2015 12:22 AM
Tammie White, Broker

Sharon, I can tell you my clients didn't want to pay for a reinspect but it was the less costly compromise.

Oct 04, 2015 06:48 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Tammie - that was a good solution.  Why pay a licensed contractor of do something very simple.

Oct 04, 2015 12:45 AM
Tammie White, Broker

Agreed.

Oct 04, 2015 06:48 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

You supplied a creative solution.  Good job!

Oct 04, 2015 03:00 AM
Tammie White, Broker

Thanks.

Oct 04, 2015 06:48 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good afternoon Tammie White,

Excellent solution to the problem. In Austin the buyer's inspector charges $50-$75 to reinspect so would be an even added advantage to the sellers here!

Oct 04, 2015 04:17 AM
Tammie White, Broker

I like that a lot.

Oct 04, 2015 06:49 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

It's all negotiable.  It says so in our contracts.  But why the sellers don't do the repairs themselves prior to listing is always beyond me.  I know what needs to be done in my house . . . they know too!  

Oct 04, 2015 04:31 AM
Tammie White, Broker

Carla, how often do you test your smoke detectors? In TN, there must be a smoke detector in every bedroom, every hallway, bonus room and garage. I have 9 in my house. I change my batteries once a year but my detectors are hard-wired. I don't regularly test them. It's easy to see how this would be overlooked.

Oct 04, 2015 06:51 AM
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

Hello Tammie, great solution.  Some repairs are easy and if they aren't electrical or plumbing may easily be done by a home owner.  Some agents automatically request a licensed contractor do the work for liability reasons.  Allowing the buyer to reinspect is a great option and in this case the buyer was willing to pay for the additional reassurance.  Another story to share at your next listing appointment to encourage the seller to do a pre-inspection.

Oct 04, 2015 06:30 AM
Tammie White, Broker

Once again, our handymen are not licensed and it's difficult to get licensed contractors in to do menial jobs.

Oct 04, 2015 06:52 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I just faced the same issue and here too, no licenses are required so you dont know how when hiring an contractor. My seller insisted and we came up with a similar plan. 

Oct 04, 2015 08:38 AM
Tammie White, Broker

It's a good work-around in cases like this.

Oct 04, 2015 01:51 PM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Tammie, sometimes things get complicated when they don't need to be.  You came up with a great solution.

Oct 04, 2015 09:41 AM
Tammie White, Broker

This solution wouldn't be acceptable with more complicated repairs.

Oct 04, 2015 01:51 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

There are times when I receive repair request with the stipulation that they be completed by licensed workers. If they are simple repairs I usually put the buyers at ease by stating that if the items are not completed appropriately they will be found out on the re-inspection. 

Oct 04, 2015 10:23 AM
Tammie White, Broker

Nicole, many times buyers don't want to pay for a re-inspection. In most cases here, buyers usually accept invoices as proof of repair.

Oct 04, 2015 01:52 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Recently I had sellers just say no.  No we will NOT hire a contractor to do these two minor things.  Like you, no contractor wanted the job and the buyers finally accepted the repairs.

Oct 04, 2015 02:04 PM
Tammie White, Broker

That's a sellers only alternative when he can't hire a contractor and the buyers aren't willing to accept the work being completed by the sellers.

Oct 05, 2015 12:57 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Tammie White that was a smart suggestion - saved everyone something. Money for sellers and peace of mind for buyers.

Oct 04, 2015 04:17 PM
Tammie White, Broker

Praful, it worked this time.

Oct 05, 2015 12:57 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Tammie, for us, it's case-by-case. Sometimes a credit at closing, sometimes it HAS to be done before closing (i.e., smoke alarms, which in this state the seller HAS to take care of) and I have a ready list of reasonable contractors who will do the work correctly the first time.

Loved this topic and glad that Kathy Streib let us know about your interesting post!

Oct 05, 2015 12:00 AM
Tammie White, Broker

Gayle, I also have a list of reasonable contractors but handymen aren't licensed in Tennessee so if the buyers insist upon licensed contractors for minor repairs, it's going to be difficult to find a reasonable contractor.

Oct 05, 2015 12:59 AM
Andrzej Niemyjski
Realty One Group - Sun City West, AZ

That is very creative solution that should solve both buyer and seller needs.  Great job

Oct 05, 2015 10:07 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

YES  home owners should be allowed to fix some items but not all depending on the category. A handyman can easily fix many of the simple items. We will request a 'licenced contractor' for electrical, plumbing, roof, hvac etc.  But all the simple stuff.....just about anybody can replace a smoke detector.  Excellent solution I might add - very smart!

Oct 06, 2015 04:46 AM