The Real Reason People Regret Winning The HGTV Dream Home - House Digest (2024)

FAQs

How much do you pay in taxes if you win HGTV Dream Home? ›

In fact, it's probably fair to say that no winner of an HGTV Dream Home could easily afford to take the prize, given the immediate tax bill. CNBC estimated the taxes on the 2019 Dream Home at $907,677. The annual property tax bill alone (about $12,60 for the 2019 winner) has proven too daunting for at least one winner.

The “Reality” of Reality Home Television

Even winners of home make-overs must often sell. According to HGTV, only one of the first 10 Dream House winners has been able to hang on to their winnings. Just six of the first 21 winners actually lived in their new digs for more than a year.

If the winner opts for the cash alternative, the Dream Home crew is usually able to sell the home in a month, sometimes in days. Though the new owners remain nameless, they purchase the homes at or around the price that HGTV deems the houses worth, but “ rarely at full value. ”

Cash Option: In lieu of taking title to the HGTV Dream Home 2023 (and the contents of the HGTV Dream Home 2023), the Grand Prize Winner will have the option of receiving $750,000 in cash.

All federal, state, and local taxes on the Grand Prize are Grand Prize Winner's responsibility. The Grand Prize Winner will be issued a 1099 tax form for the actual value of the Grand Prize.

Given the seriously steep price tag on the HGTV dream homes — and the equally pricy tax bill that comes along with winning one — it likely comes as no surprise that most winners opt to sell the house after winning.

Congratulations to Marie Davis of Rock Hill, SC! She is the winner of the HGTV® Dream Home 2023 sweepstakes, a grand prize package valued at over $2.7 million. “It's all still registering.

Grand prize winners of the HGTV dream home (taking place in 2023) will have the option of receiving $750,000 in cash (which is the “cash option”).

Do Homeowners Get Paid to Be on Love It or List It? To put it simply, no. While HGTV doesn't specifically address payment in their application, they do note that homeowners now must have a $100,000 renovation budget (this requirement was previously $50,000 and then $75,000).

Do people on HGTV pay for their own renovations? ›

Does HGTV pay for the renovations? There's a common assumption that making it on a show comes with a free renovation, or at least discounted goods. On the contrary, homeowners have to come up with the money for the projects.

How will you know if you've won? HGTV typically surprises their winners with an "ambush". They recruit friends and family to help set up a surprise announcement, and film the winners' reactions.

Designed by Western Design Group and built by Mountain Plain Homes, the 4,360-square-foot property boasts three bedrooms and three bathrooms. HGTV decorator Brian Patrick Flynn, who helmed the house's interior design, spoke with PEOPLE about its unique style and one-of-a-kind features.

The question remains if the homeowners get to keep the furniture or if it goes away after filming, when the final reveal is over. The answer is that the homeowners do keep the furniture, as the cost comes from their budget.

Once you make $2 million, average tax rates start to decrease. The average tax rate peaks at 25.1 percent for those making between $1.5 million and $2 million. After that it starts to go down, and falls to 20.7 percent for those making $10 million or more.

Host Brian revealed that the "dreamy mountain giveaway" has a lower level that is a garage and a basem*nt, while up above it is a single-story living at its best. The house also has a massive central break room and an open kitchen with gorgeous cabinets along with a sprawling island.

Selling the Property

Then, the person will need to pay federal and state taxes for the winnings. This leads to the sale of the property to potential buyers in the area. To provide a better monetary opportunity, the seller will either accept a cash award or sell the property quickly to ensure a profit from the contest.

Taking your winnings in a lump sum lowers the total amount you receive and can lead to expensive tax consequences. Taking your lottery winnings as an annuity over time will result in total payments closer to the advertised jackpot.

Before you see a dollar of lottery winnings, the IRS will take 25%. Up to an additional 13% could be withheld in state and local taxes, depending on where you live. Still, you'll probably owe more when taxes are due since the top federal tax rate is 37%.

What is the first thing you should do if you win the lottery? ›

Meet the lucky winner of HGTV Urban Oasis® 2022 in Nashville, TN. Congratulations to Regina Richardson of Pittsboro, NC; she is the winner of the HGTV Urban Oasis® 2022 sweepstakes, a grand prize package valued at over $1.3 million!

NEW YORK, Feb. 16, 2023 /PRNewswire/ -- The HGTV^® Dream Home 2023 located in Morrison, CO, will close its sweepstakes on February 16, 2023 at 5 p.m. ET. The prize package, valued at over $2.7 million, includes the newly built, fully furnished home, an all-new Jeep Grand Cherokee 4xe and $100,000 from Ally.

MORRISON, Colo. — HGTV's annual Dream Home contest is now open for entries, and the grand prize is located in Denver's backyard. Every year since 1997, the Home & Garden Television network's sweepstakes has featured a newly built, fully furnished home along with other prizes.

See every stunning space from HGTV Dream Home 2023, a grand mountain escape packed with high-end design and located in Morrison, Colorado.

The three-bedroom, three-bathroom home sits at approximately 4,360 square feet, resting on a secluded road against the backdrop of the beautiful Rocky Mountains. Leaning into the outdoor lifestyle of Morrison, the home provides an elevated take on rugged design with sophisticated luxury that greets visitors upon entry.

May 2023 will see HGTV release fresh home décor content with three new shows being added to the channel's line-up. All new seasons of Fix My Flip, Flipping 101 With Tarek El Moussa and Celebrity IOU returns to HGTV next month with fresh content and stunning home makeovers.

Betsy Ayala, the senior vice president of production & development for HGTV, explains, "Most if not all of our flipping shows are staged," meaning the furniture does not stay in the home after filming. Much like real estate agents stage a home for viewing, HGTV does the same for homes before shooting the final scenes.

Clearly there's no shortage of viewers hooked on nice houses. But here's a bit of information that the HGTV fans may not be aware of - many of the stylish homes appearing on the network's shows are available as vacation rentals through websites such as HomeAway, Airbnb and VRBO.

Property Virgins takes viewers inside the intense world of house hunting through the eyes of first-time buyers.

Which HGTV show is the most real? ›

As Roth revealed in her entry, the budgets are in fact real. However, she understands why fans are skeptical. "On Help! I Wrecked My House you might see a grimy old kitchen and in what feels like the snap of a finger it transforms into a beautiful new, crisp, clean, Pinterest-worthy masterpiece, she wrote.

While the homeowner ultimately pays for the renovations, it's likely helpful to not have to come up with the cash before the improvements are made. If you're a homeowner who enjoys reality TV renovation shows, you've probably envisioned what it would be like to appear on one yourself.

Even though some of the show is staged, most of it is real.

"They used all of our actual houses likes and dislikes, all of our actual concerns and the actual disagreements that we had were used in the show."

That's pretty accurate, according to News & Record. An HGTV rep reportedly told the website: “The homeowners always pay for the renovation and they are given the opportunity to purchase the furnishings and décor used for the staging. What they don't purchase is removed from the home." So there you have it!

As for Ben, he explained to People, "We approach everything as a team." That may be true; however, they both have their own specific tasks when it comes to renovating and their own skillset. Indeed, Ben tends to take care of the wood-related work, which is why you might have assumed that he's a contractor or carpenter.

CNBC estimated the taxes on the 2019 Dream Home at $907,677. The annual property tax bill alone (about $12,60 for the 2019 winner) has proven too daunting for at least one winner.

WILMINGTON, N.C. (WECT) - HGTV announced Aug. 31 that the winner of the HGTV Smart Home 2022 contest has been chosen. Per the announcement, Leah Nadorff of Columbia, S.C. has won the $1.2 million prize package, which consisted of: A 3,000-square-foot home.

And the [answer to the question I'm asked] most often, “Yes, David Bromstad and I are really, truly friends.” Find more info on Alice at www.gallimaufrydesign.com.

David Bromstad and Jeffrey Glasko

David announced that he had been in a long-term relationship for the past eight years.

What is bromstad salary? ›

One of their first renovated homes sold just after one week of being on the market, according to Realtor.com. It was listed in early February and gained tactics from buyers. The Napiers first started the remodel in 2016 and slowly made its way to the finish line to a complete remodel these last few years.

Admittedly, we've often wondered if people whose homes get transformed on the hit HGTV series get to keep all the dreamy furniture and home accessories featured on their episode or if it's just for Reveal Day on television. The answer? Both.

After the show ends, homeowners on "Love It or List It" are given a choice. They can keep the furniture that's on-site if they want to do so, or all of the staged pieces can be removed. If they decide to keep it, they'll pay for it.

You must pay federal income tax if you win

You'll fall into the highest tax bracket in the year you win if you take the jackpot in a lump sum. As of 2022, this means you'll likely owe the IRS at least 37% in taxes.

Do Homeowners Get Paid to Be on Love It or List It? To put it simply, no. While HGTV doesn't specifically address payment in their application, they do note that homeowners now must have a $100,000 renovation budget (this requirement was previously $50,000 and then $75,000).

If you win at least $600, you'll probably get a 1099-MISC tax form from the entity that awarded you the cash prize, and they'll also send a copy to the IRS. Even if you don't get a 1099, you still have to report the value of your winnings. Merchandise you win is taxable.

Social Security benefits may or may not be taxed after 62, depending in large part on other income earned. Those only receiving Social Security benefits do not have to pay federal income taxes.

If you make $600,000 a year living in the region of California, USA, you will be taxed $266,298. That means that your net pay will be $333,702 per year, or $27,809 per month. Your average tax rate is 44.4% and your marginal tax rate is 52.6%.

Can I give someone a million dollars tax free? ›

Lifetime Gift Tax Limits

Most taxpayers won't ever pay gift tax because the IRS allows you to gift up to $12.92 million (as of 2023) over your lifetime without having to pay gift tax. This is the lifetime gift tax exemption, and it's up from $12.06 million in 2022.

Taking your winnings in a lump sum lowers the total amount you receive and can lead to expensive tax consequences. Taking your lottery winnings as an annuity over time will result in total payments closer to the advertised jackpot. In some states, you can sell your lottery payments for a lump sum of cash.

Once the money has been collected, it usually takes five to ten business days to hit your account. Banks are often wary of handling such large transfers, and not all are equipped to handle jackpots. At the earliest, you should plan to receive your lottery winnings between three and four weeks after the draw date.

After the show ends, homeowners on "Love It or List It" are given a choice. They can keep the furniture that's on-site if they want to do so, or all of the staged pieces can be removed. If they decide to keep it, they'll pay for it.

That's pretty accurate, according to News & Record. An HGTV rep reportedly told the website: “The homeowners always pay for the renovation and they are given the opportunity to purchase the furnishings and décor used for the staging. What they don't purchase is removed from the home." So there you have it!

So why don't The Price Is Right contestants just take the cash value instead of the prizes? Simple: the game doesn't offer cash value. “There is no cash value option,” explains Aurora's Blog. “They make it super clear in all of the paperwork – you take exactly what you won, or you take nothing.”

After being selected, contestants must attend the taping in California. However, the studio does not cover travel expenses for the contestants — that is all out of pocket, so get your wallet ready.

Until March 1, 2018, no regular game had ended in a tie-breaker. If no contestant finishes Final Jeopardy! with a positive total, there is no winner and three new contestants compete on the next episode. This has happened on several episodes, including the second episode hosted by Trebek.