What HGTV Doesn't Tell You About Their Dream Home Giveaways
For most, the thought of winning the annual HGTV Dream Home sounds like, well, a dream. The problem with dreams, though, is that at some point, you wake to reality — and unfortunately for the majority, the reality is that the taxes involved in winning the sweepstakes are simply too high.
The entry process for HGTV Dream Home is simple. Participants enter on HGTV.com and its partner, FoodNetwork.com, and stand in the running to win truly epic prizes. In 2024, that includes an E-Class Mercedes-Benz, a $100,000 cash prize, and, of course, a dream home, with interiors designed by one of the HGTV's stars, Brian Patrick Flynn. Per the competition's rules, that even includes furnishings, bringing the home's approximate total value to a whopping $2,069,595 (via HGTV). There's no denying, then, that it's a sweet deal. However, as with anything, the Ts and Cs apply, and as many past contestants have learned the hard way, each of the prizes involved is taxed — and no, that's not taken care of by the network.
Granted, while HGTV doesn't share all that information while advertising the dream (after all, "HGTV Dream Home — minus taxes" doesn't exactly have a fun ring to it), their rules are pretty clear in this regard. Of both the house and the car, they warn that none of the taxes, fees, insurance or maintenance are covered. It's just as well, then, that there's a cash prize alternative for anyone planning to opt out of the OG giveaway.
Most winners don't keep the home
We weren't kidding when we said the HGTV Dream Home prizes are taxed. The rules state that all sweepstakes are subject to federal, as well as state and local taxes. That's not even including the costs of living — a major change in itself, since most winners are used to much smaller properties. It's not exactly surprising, then, that in 2018, Country Living reported that not even 30% of the contest's previous winners had been able to afford their new homes for a year or longer.
Instead of taking the home, many past winners have ended up selling. Per Country Living, there was previously an option for winners to sell the homes back to the builders, so long as they did so within a period of 12 months of taking ownership. That's no longer the case, but it is still possible for winners to sell of their own accord. Today, the network also offers a cash prize alternative for those who aren't willing to take the risk. In 2024, the cash prize is a cool $650,000 (via HGTV).
Given the hidden costs, it's safe to say that the cash prize is usually the better choice for most contestants. However, some who have taken and lost the homes are happy they took the chance. Such was the case with 2005 winner, Don Cruz. Speaking to KLTV, he shared, "I'd do it all over again." Hey, for a short time, he did get to live the dream.