The Real Reason People Regret Winning The HGTV Dream Home

Would you shell out a million dollars for a "free" home? Why did one winner auction off everything in his home piece by piece? Here's why HGTV's Dream Home usually turns into a nightmare for the winners.

#HGTV #DreamHome #NewHome

[HouseDigest]

Do you think you would want to win one of these dream homes?

[friendofdorothy]

I won a St. Jude dream home over a decade ago worth $440K at the time and can attest to the taxes. My federal income taxes with the win came to $148K (had to take a mortgage out on the house to pay those and thus get ownership). My property taxes are now $9800 with the current value of the home. After decades of renting, this was indeed a godsend and I’m still living in my beautiful home and am incredibly thankful…but it was never “free”. I am fortunate I can afford all this, but am very much aware that if the house had been worth more I couldn’t have swung it.

[Bess]

HGTV doesn't care about giving anyone a dream home. The show is designed to sell new top-of-the-line overpriced decor, appliances, and building materials.

[AntoinetteDavidson]

I think HGTV should consider building smaller and cheaper dream homes with cash prize so that the winners will more likely to keep it and live in it; OR build more homes so they can have two, three or even four winners each year. A 1800 - 2500 sq ft home can still be a dream home esp when design build and designed by HGTV team. The winners would be more likely to live and maintain it.

[skyfi]

I entered this year, twice every day since it started. If I win I know I can’t keep it but I’m more than happy to take the cash prize. I’d definitely be able to save most of it and still get my own house and a nice plot of land.

[kriscampbell]

I won a boat, motor and trailer 22 years ago. The year 2000. My federal taxes that year were $3500 additional for the boat. That was a lot of additional money to fork over for me at that time. The whole experience of winning was not as joyous as I dreamed it would be. The actual biggest blessing out of winning the boat was the realization that winning "stuff" does not make a person happy. I don't dream and covet and long to win prizes. I'm more content with what I have and content with my modest income.

[oldladylovesBruno]

I'd have to sell it. I'm on Social Security, and there's no way I could pay the taxes. I'd buy a smaller house in a state I want to move to.

[itsamadmadsadworld]

What they give away with one house they should have 4 winners and with reasonable houses that are for average families..you can still have a beautiful home in the 300 to 400 thousand range..sure everyone dreams of being able to live in a luxurious multi-million dollar house but that's exactly what it is...a dream....and for a lot of people a brand new modest home is a dream come true...

[Timzart]

I'd take the cash in two seconds if I won. Depending on the area or real estate market, trying to sell the home immediately might be a problem, and aside from not being able to afford taxes, the upkeep on a home like that would be important to retain resale value. Plus, it'd just be a headache having to sell the home although you would think that it being an HGTV dream home would make it easier to sell. Maybe not, because people with over a million dollars to spend on their homes are usually very specific about what they want.

[ShadowIsStillAlive]

I love the houses, but I definitely would take the cash prize rather than the house. Those taxes are crazy

[amvderby]

One of the home make over shows renovated a home in my old hometown. It was for a large low income family who just lost their Mother to Cancer. House came out beautiful, so beautiful the County reassessed it to the point that the taxes were unaffordable and the family lost the house months after they moved in

[JS-esep]

Some years ago a distant relative of mine won a Dream Home (the charity lottery was to raise money for a cancer hospital). This is in Canada. Lottery wins (at least those run by gov't. or by charity) are not taxable. But yes, the property taxes would be based on the home's value.

It came beautifully furnished. He moved in for a few months. During those month's they did major renovations on their own home. They had good neighbours, the kids were in school, they loved the house. They chose not to leave it. (they even added a pool). Once their renovated home was ready to move back into, they sold it. They took whatever furniture they liked to put into their renovated home. They sold off the rest.

I think they did it wisely. It was an absolutely stunner of a home....but it would have killed them financially just because of the property taxes.

[ginaborgione]

As much as I would love to win I could never ever afford taxes so I would have to take cash option

[jenn]

I met a person in the city where we live who took the house instead of the cash and they regretted it since they couldn't afford the expenses a large home brings!

[hazybrneyesmd]

I believe that HGTV and developers already know this (the taxes). I think they designed the home knowing the winner won’t be able to the afford it and buy it back to sell it to someone that can afford it and jack the price up in turn getting back the cost to build it and a profit. Lame if you ask me. It’s like you wanting to take me to dinner and ask me to pay the tip and give you gas money and it’s more than the dinner itself. 😐

[AnnieinKC]

THANK YOU for doing this video! I stacked cash in the '80's rehabbing & flipping real estate. But I would never live in such a big home myself. Do you really want to give away THAT much money to real estate taxes and huge utility bills, EVERY year, for YEARS? You will NEVER see that money again! Huge price to pay just to show off. I'm not insecure enough to give away my money like that. I don't have anyone that I need to impress like that. Seriously.

[terrispinazza]

It's fun to watch the reveals, but we've never entered because they are usually in places we wouldn't live or vacation. Plus we already know that income taxes, property taxes would be due. I hope that HGTV lists those issues in the "fine" print on the entry process. Bad on them if they don't. As my dad said, nothing is ever really free although it's fun to dream about.

[natashatate]

I'll take the cash option...it could take forever to sale

[PSA]

On a smaller scale this reminds me of Oprah giving away all those cars that very few could actually afford for keep .

[mcrchickenluvr]

It’s not just property taxes you have to pay. Any time you win anything if monetary value that counts as income and is 100% taxable. It’s not much different than getting a year end bonus at your job. Especially if it comes separately.