A seasoned professional with a diverse background, Hampton Barringer Luzak has worked in different fields ranging from sales to feature-film casting, throughout her career. Her current endeavors involve a deep commitment to preserving history by restoring historical houses, particularly properties dating back to the late 1700s. Hampton B. Luzak's areas of expertise include interior design and the art of house flipping.
According to real estate data firm ATTOM, house flipping reached its highest level since 2000, with nearly one in 10 homes sold in Q1 2022 being converted. Despite this proliferation of house-flipping contracts, ATTOM reported a dip in profit margins since 2009.
House flipping involves buying a residential property, renovating it, repairing faults, and selling the property when its market value is higher than the cost of purchase and management. However, not all house flippers make decent profits from sales.
Potential flippers should be aware of several challenges they might encounter. First, many flipped homes have significant issues, such as asbestos, mold, or termites, leading to unexpected renovation costs. Second, legal issues can arise if the property has an unclear title or undisclosed problems. Building a reliable team, including a real estate attorney, is crucial to mitigating these risks.
Finally, there's no guarantee that the flipped property will sell quickly, which could lead to ongoing costs like mortgage payments, property taxes, and maintenance. Being successful in the house flipping business requires knowledge of the real estate market, the ability to spot potential, and proactive consideration of the factors above.
