So, winning the HGTV Dream Home is guaranteed financial ruin, yes?
Post ReplyPost New TopicPosted 1/2/2009 by Morellis Cupcake in NSBR Board
 

Morellis Cupcake
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Posted: 1/2/2009 1:30:49 PM
DH and I watched the special on the 2009 Dream Home from HGTV. Gorgeous as usual, in Sonoma wine country.

HGTV Dream Home

I entered once, then thought about it. If we won by some miracle, we'd be killed by the costs. Closing, land transfer, record deed, and all taxes. Who can afford that? Do you have to be rich to begin wtih to win a prize like that?

Selling it is an option, I know, but that, well, sucks.

Has ANYONE ever kept the dream home they won?


~~Karin



dalayney
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Posted: 1/2/2009 1:32:28 PM
I don't think anyone has ever been able to keep it.
I always wonder how much they get after they sell it and all of that stuff is paid off.



GIPfunny

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Posted: 1/2/2009 1:32:31 PM
Now, don't quote me on this, but I thought I read where only one person has kept the dream home.






coastalgirl73
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Posted: 1/2/2009 2:12:32 PM
Well... it would not be as difficult to keep as it seems on first blush. One could get a home equity loan to cover the taxes, etc., provided your income is sufficient to cover the debt service.

But even if you can't afford to service that kind of debt, you can sell it, which might sort of suck, but you're probably still going to walk away with $1 million or so. I wouldn't consider that "financial ruin."



pegaroo
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Posted: 1/2/2009 2:15:33 PM
Yep that would be a big tax bill to win that house - but I would happily have it! I would sell it and a lot of the furnishings and keep the things I love. When its all said and done, my guess is you would have a million to pocket!


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queenbpeas
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Posted: 1/2/2009 2:23:50 PM
I just think about that girl who won last year and who looked so disgusted by the whole thing. She was so terribly ungracious. Did anyone ever figure out what the deal was with her?



writermom1
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Posted: 1/2/2009 2:58:14 PM
I cannot believe this thread! I was honest to Pete just watching that commercial last night and thinking "why don't we ever hear more about the winners?"

I cut last year's winner some slack. I think she was just in shock.

Seriously though even if costs were covered, I know we couldn't just up and move to wherever the house is. They have yet to build HGTV's Dream House is Hooterville kwim?

It's funny - someone gets voted off the island they're on Today show and talk shows the next day. People win the Publisher's ClearingHouse and HGTV Dream House etc. and it's like we never hear a word again unless they OD or shoot someone.





AN
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Posted: 1/2/2009 3:03:04 PM
Wow, that is a BEAUTIFUL home! I'd definitely sell it though, not just for costs, but because I wouldn't want to move there. However, that sure would go a long way in getting me my dream home where I wanted it!

writermom1
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Posted: 1/2/2009 3:07:22 PM
I know people enter willingly but in THIS real estate market when oftentimes taxes are NOT lowered based on foreclosure losses (meaning your taxes can stay HIGH while your sale price plummets) I can see how winning the house - and trying to unload it - could actually cost someone.


They need to make a dream house at around 400 to 500 thousand so that a winner can ACTUALLY KEEP IT. HGTV does not expect you to keep it and know that unless you have a lot of money, YOU CAN’T KEEP IT.

MSNBC quotes HGTV spokeswoman Emily Yarborough as saying: “Our vision of the dream is that it enables you to do what you want to do.”

He ( winner Mr Cook ) said the electric bill on the dream home is more than 10 times what he currently pays.

( winner Mr. Cruz ) The contest’s 2005 winner, Don Cruz, moved from suburban Chicago to Tyler, Texas, to take possession of his dream home, a lakefront property valued at $1.5 million, plus furnishings. But taxes on his winnings are expected to total more than $650,000, and local officials slammed the door on Cruz’s plan to pay his bills by renting the boathouse and a master bedroom

HGTV spokeswoman Emily Yarborough emphasizes that the network still doesn’t expect winners to actually live in the Dream Home.

( 2004 winner Ms Nakao ) Ordinary people cannot keep a home like that,” she said from Sacramento, Calif., where she lives.

Mr Cruz states that he is not allowed to do anything to the property because you do not win the property, it is rented to you on a 30 year lease.

Monthly maintenance runs about $2500.

The intent is not for a winner to actually KEEP the house but to have to Sell it. WHy doesnt HGTV just hand you a check for the 2 million dollars and cut the BS????

Reality says you will be lucky to just sleep in the bed.

Try to win the contest but I would not be jumping up and down and screeming knowing the next day I need to find a realtor.

HGTV needs to get reality based.



To see video of the 2008 winner's odd reaction ( I suspect she was reacting to the fact that Lauren Lake just barged into her home!) Blog with link to video

Money Magazine article on the downfall of the 2006 winners (the only winners to actually attempt to live in their home) Money magazine article on 2006 winners (An interesting indictment of poor choices (11 cars?) and the fact that so many of us forget that bigger houses = bigger expenses).




pennyring
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Posted: 1/2/2009 3:15:38 PM
What's up with that lady just walking into her house? I think I'd be taken a bit aback by that too.




blumargarita
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Posted: 1/2/2009 3:20:55 PM
Okay, this is probably just me (coming from my 3 dog and no babies household), but...

at first glance, I thought the little thing moving back and forth on the bottom right of the clip was a small dog humping a pillow!! I thought, how embarrassing!!

I agree that it was probably a reaction to a woman just walking into my home w/out even knocking--- I'd be on fire!!


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writermom1
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Posted: 1/2/2009 3:24:04 PM

at first glance, I thought the little thing moving back and forth on the bottom right of the clip was a small dog humping a pillow!! I thought, how embarrassing!!



blumargarita you have great eyes! I never noticed that in the 2-3 times I've seen the clip but plenty bloggers commented on it!

From Star Tribune.com


Dee, a physician's assistant, thought that her girlfriends had gathered to give her an early birthday party when HGTV's Lauren Lake knocked on her door. Her shock once she learned the news was telecast Sunday night on HGTV.




Hmm... does anyone else read this as if the announcement isn't quite the "surprise" HGTV would want us to believe? I think someone knows they are coming (which might explain the open door). If only to insure that someone is HOME. In this day and age with people out and about, could you imagine the anti-climax of " And the winner is ... not home. "

I'm overthinking this but I also think that if someone DID barge into my home, I don't see DH staying in the kitchen with the baby while I wandered out first if he was in the dark about the whole thing.

Here is a less depressing take on winning. I'd still love to take my chances (although I'd definitely sell it and use the money to better our future and renovate my own house). Dream Home Winners - where are they now?




Skybar
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Posted: 1/2/2009 3:30:29 PM

Reality says you will be lucky to just sleep in the bed


if you win, do not sleep in a bed or stay overnight in the house.

I didn't know the part about not winning ownership of the land... am going to send that post to a tax auditor and see what she says about it.
she always has said if you win you can't stay overnight in the house - it sounds like the hgtv officials are screwing people tax wise on this.

who wants a house on land you don't own?






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writermom1
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Posted: 1/2/2009 3:34:40 PM
I caught that too Skybar. I wondered if that applied only to THAT house (was it a condo type thing?) or to all of them.

Honestly, I get that no one holds a gun to your head and makes you enter but honestly, this whole thing really reads like one huge commercial for the advertisers and merchants who have products featured in the home. It doesn't sound like HGTV really gives a rats patoot whether the winner really gets to enjoy all that high-end stuff. I think the houses have become so over the top that the type of people who could actually AFFORD them would probably prefer to build their own dream house anyway wouldn't they?




Georgiapea
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Posted: 1/2/2009 3:40:51 PM
The house in Calif. looks very out of place in the modest neighborhood. All the surrounding houses are small and then there's this HUMONGOUS sprawling thing. Plus the house style itself is not something I'd want if I were actually 'paying' for it.

The one in Florida looks more appealing but I couldn't get the video to load.

emabmom
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Posted: 1/2/2009 3:45:17 PM
Prizes fall into a different tax bracket from income so we pay roughly 25% for income tax but prizes are taxed about 40% I believe so you lose about half of what you get.

for 3600 sq ft I want more than 3 bedrooms!!!! i have 4 children.


Amy

stampbooker
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Posted: 1/2/2009 3:46:36 PM

Hmm... does anyone else read this as if the announcement isn't quite the "surprise" HGTV would want us to believe? I think someone knows they are coming (which might explain the open door).


Of course someone knows. That is why her friends/family were throwing her an early birthday party. That was the cover story so that HGTV could come and surprise the winner. It was pretty obvious that nobody spoiled the surprise for the winner as she was certainly in shock!

Julie

eebud
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Posted: 1/2/2009 4:06:19 PM
I am wondering if the land not being owned by the owner of the house is only the Tyler house. This is what I found about that:


Despite rumors that had been going around in the community, the family did have full title to sell the house and the fact that the city still owned the land and leased it back meant nothing, as that's SOP for all Lake Tyler property. There was a Title agent on site and the owners were paying for title insurance.




Auction off Tyler HGTV Home


I have a lake house that I don't own the property. It is owned by the Corp of Engineers and leased by the club that I am a member of. I then lease my lot from the club. Every 5 years, the Corp of Engineers looks at the lease to determine if they are going to increase the lease amount that the club pays and this goes into the amount that we pay in club dues. The club signs 20 year leases with the COE that can be reviewed every 5 years (as noted above).





Hans on left, Bud in middle, Gretchen on right

crayonfan
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Posted: 1/2/2009 4:46:19 PM
*IF* you had the monmey to live in a house like this, and that is a big if, wouldn't it make more sense to wait for the fire sale when it goes up for auction? Then you wouldn't have the hefty prize tax and you would get the house for a huge amount under appraisal.




~ Aimee ~

writermom1
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Posted: 1/2/2009 6:36:45 PM
If you win and then sell - do you pay taxes on the estimated value at the time you won it - or only on what it sells for?

Gosh wouldn't it be great to have to worry about the answer to that question?!




MarshmallowKitty
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Posted: 1/2/2009 8:26:58 PM
Wow, what a strange reaction. She had more enthusiasm for scratching her head then she did for that awesome home.



writermom1
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Posted: 1/2/2009 8:32:21 PM
I can't really judge the 2008 winner. We never know how we'll react. It was a multi-million dollar dream home but it was a million-dollar memory just a few weeks ago when I walked into my own "suprise!" party.

I wish I oculd do it over because instead of jumping up and down and saying "oh my gosh you guys you shouldn't have!" I lunged into a nearby kitchen and no one even saw my reaction - save for the friend who was trying valiantly to shove me back into the room.

I felt so bad. It wasn't something I planned - it just happened. They scared me a little.




scrap4maddie
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Posted: 1/2/2009 8:46:04 PM

HGTV spokeswoman Emily Yarborough emphasizes that the network still doesn’t expect winners to actually live in the Dream Home.



Then the contest is just stupid.


~Erica~






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