In some years, the winner is giving the option of choosing a cash prize instead of taking possession of the Dream Home itself. If the winner chooses this option, they receive the associated prizes like the vehicles, cash, and furnishings, but HGTV retains the rights to the house.
Meet the lucky winner of HGTV Dream Home 2022 in Warren, VT. A huge congratulations to Karey Wolstenholm of Overland Park, KS! She is the winner of the HGTV® Dream Home 2022 sweepstakes, a grand prize package valued at over $2.4 million.
And, it seems the winners don't even get to enjoy their dream digs for very long. Country Living reported that by 2018, with over 20 HGTV Dream Home winners crowned, only 28% of the winners actually lived in the home for over a year.
Santo said the winner also has to pay income tax. According to HGTV, the grand prize includes the fully furnished house, plus $50,000 cash, valued at a total of about $684,000. Santo says the winner will be taxed at the top federal rate of 37 percent. Add on state taxes, and they'll owe between $238,000 - $266,000.
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.
That means you'll pay taxes at your marginal rate because the value of the prize is on top of any income you've earned from employment and investments. Another problem: Most dream home prizes are located in areas with higher costs of living.
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. Total ARV of the Grand Prize is $925,120 if Grand Prize Winner selects the Cash Option in lieu of the HGTV Dream Home 2023.
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 4,360-square-foot home features a modern kitchen, an open floor plan and plenty of windows to soak in views of its Rocky Mountain scenery. The home's main bedroom has a walk-in closet, an en-suite bathroom and deck access.
Host Brian revealed that the "dreamy mountain giveaway" has a lower level that is a garage and a basement, 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.
Promotion starts at 9:00 a.m.ET December 23, 2022 and ends at 5:00 p.m. ET on February 16, 2023. For full Official Rules, prize disclosures, and to enter, visit https://www.hgtv.com/sweepstakes/hgtv-dream-home/sweepstakes or https://www.foodnetwork.com/sponsored/sweepstakes/hgtv-dream-home-sweepstakes.
Do homeowners on HGTV shows get to keep the furniture? Speaking of inside the home, many viewers swoon over the final layouts. But here's the kicker: More often than not, the homes are staged, meaning the homeowners don't get to keep the furniture and decor that's shown on TV.
Paying all cash for a home can make sense for some people and in some markets, but be sure that you also consider the potential downsides. The downsides include tying up too much investment capital in one asset class, losing the leverage provided by a mortgage, and sacrificing liquidity.