When you are selling your home the buyer is likely to complete a home inspection as part of their due diligence process. Upon completion of the inspection, the inspector will create an inspection report that will likely contain a summary section of items he/she feels need to be addressed.
At this time the buyer may provide the seller the opportunity to correct said items and here's where people can get into trouble. Even if you have the most skilled handyman, the ability to utilize his services will be determined by the cost of the repairs. If the aggregate cost (material, labor etc...) of ALL repairs is in excess of $1000 you must use a licensed contractor. This does NOT mean you can break the total repair list into subcategories such as electrical repairs, plumbing repairs, drywall repairs etc... with each having their own $1000 limit, it's for ALL agreed-upon repairs.
In addition, if the aggregate amount is under $1000 the work must also be of a casual or minor nature to utilize the services of a handyman. If the work is complicated, but under $1000 aggregate cost, you would still need to utilize a licensed contractor.
The reason the exemption was put into place was to protect the public from unscrupulous and unqualified persons doing work that they are really not qualified to perform. The licensing requirements for contractors require them to follow various regulatory measures.
If you have questions about this issue, please feel free to reach out to me for more information.
ref: article by Scott Druker, general counsel of the Arizona Realtors