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Have you ever wondered how everything REALLY goes down money-wise on those TV shows that remodel homes for free? Let me lay out the money details for you that many – including the contestants – likely don't consider before applying.
Every now and then I give myself over to the HGTV daydream.
You know, where a a crew of highly-trained, ultra-chic designers come into my home and fix my house for free?
I run through a list along the gamut of mildly irritating to take-a-jackhammer-please, including:
- demolishing our second-floor bathroom
- taking out our backdoor and replacing it complete with a screen
- replacing our aged, dangerous-to-operate, A/C and furnace
- etc.
Their budget is unlimited, they don’t need us to get our hands dirty, and they’ll be completely finished with this life-changing event in just four days.
Score!
The reality is that my home will probably never be featured on one of these types of shows (doh).
But for the hundreds of homeowners who will have their homes repaired, remedied, and otherwise renovated in front of a national audience, there are financial realities you need to know.
Of course, in general it’s a huge benefit to have your home renovated or your project rescued by professionals – sometimes paid, sometimes not paid by the television studio (does HGTV pay for home renovations?) – but it’s not all roses and red velvet cupcakes.
Money Reality #1: Your Property Tax Bill Will Increase
I cringe each year when our assessed property tax statement comes out.
Probably because for the last two years, we’ve seen a significant increase in what our tax collector says we owe due to raising our property’s value (by the way, you can contest your property taxes; we did and won several years ago).
Well it turns out that when a show comes in and renovates your property – raising your property’s value – your annual tax bill will increase as well (and if you think your tax assessor may not notice, just remember that this will be airing on national television, which means the production crew/construction workers will be pulling permits to legally make the changes to your home).
Here are some examples from past shows:
- The Llane Family, Bergenfield, NJ: The original mortgage on their home in 2002 was for $223,706 with a tax-assessed property value of $117,300 (FYI: the tax-assessed value of your home is often less than the market value). In 2011, after being on a renovation reality show, the home’s tax value was assessed at $443,800. They paid $6,488 for their 2007 property taxes, which spiked to over $13,000 in 2011 (2012 taxes were even more, at $15,000).
- The Dickinson Family, Beaufort County, SC: The Dickinson’s home that used to be 1,869-square-foot was replaced with a 4,000-square-foot home. Their original home’s 2010 value was $166,223, with a property tax bill of $744.18. A county assessor estimated that the new tax bill would come to about $2,100 per year.
- The Wofford Family, Encinitas, CA: Their 31-year-old home used to be 1,212 square feet with an annual property tax bill of $2,698. As of 2004, their newly renovated 4,600-square-foot-home, valued at $410,474, has an annual tax bill of almost $6,000, an increase of $3,302.
Money Reality #2: There Might Be Shoddy Work Left for You to Repair
Even though the outcome of home renovations can seem magical, when the cameras stop rolling, the light of day sometimes reveals shoddy work due to cutting costs/corners/and huge time constraints.
Here’s a few examples:
- April Lunsten figures it will cost her $1500 to fix the issues when the cameras stopped rolling. Those issues include things like handmade bedding where the stitching fell apart upon the first use, paint streaks, and loose moldings.
- Rochelle Kirk and Scott Waters of Covina, CA were featured on the show Catch a Contractor. They are now suing them for $2.87 million. Sewer pipes were moved during production, and one was not reconnected. Their claim is this led to 200 gallons of sewage spilling under their shower, into the walls, and under their home. The couple and their family experienced medical problems prior to figuring out what was going on. They had to move out of their home and into a hotel between August and December 2013 while their home was repaired and remediated of mold, water intrusion, and sewage.
- Lawsuit Outcome Update: "In May 2014, the suit was dismissed due to releases the Plaintiffs had previously signed, and because the Defendants' actions were agreed to be "in furtherance of free speech rights" and protected under California's "anti-SLAPP" statute. Plaintiffs were ordered to pay defendants legal fees."
- An anonymous reader who was on the show Designed to Sell pointed out that, “our ‘custom’ pillowcases in our bedroom were actually duct taped fabric around our pillows. Ceilings and areas of paint that wouldn’t show on camera were not finished.”
- Wendy and Cenate Pruitt have had to deal with a basement retaining wall where a downspout drains into that has kept lots of water in their basement. While the original construction crew did come back out after the cameras stopped rolling, the problem has not been fixed. So far they’ve had to rent a swimming pool pump to pump water out after a rain. He’s also had to purchase a tool shed because he can no longer store things like his lawnmower in the basement.
Some of these guys might end up in court! Here's my article on who pays on small claims court tv shows.
Money Reality #3: Your Utility Bills Will Likely Increase
Getting a much larger home than the one you started with, or allowing some really cool upgrades, can spell trouble for your monthly utility bills.
Here are two examples:
- Victor Marrero had a 3,000-square-foot makeover on his home, which brought his monthly utility costs to between $700 and $1,200.
- The Byers family’s newly built, 4,000-square-foot, Oregon home took them from $150/month utility costs all the way to $600/month in utility costs. Ouch.
You might need to think about easy ways to make extra cash at home.
Just check out this family's story:
Money Reality #4: Your Maintenance Costs Will Likely Increase
Those European plaza fountain fixtures and landscapes that look like they popped straight out of a museum courtyard don’t just maintain themselves.
Wendy and Cenate Pruitt found this out the hard way.
“Just about all the flowers they planted were dead in two or three months. They planted this fancy golf course sod in the front and it was immediately overtaken by crab grass. It got to the point where we had to hire professional lawn services to come out and maintain it...I would guess we ended up spending $1,200 to $1,500 a year hiring people to come in and clean it up.”
Money Reality #5: You Might Still have a Mortgage When All is Said and Done
Let’s say a show comes in and demolishes your old home to rebuild you a brand, spanking-new one, complete with that European plaza fountain fixture.
They use volunteers and donations to fund the costs, so it would appear you're in the clear. Woohoo!
Unfortunately, this doesn’t mean your old home’s mortgage is forgiven. For example, the Byers family still owes $250,000 on their old mortgage after getting a brand-new home built for them.
Also, some families take out a mortgage on the new home in order to fund other things and/or fund the increased costs of living in their renovated home.
For example, one family in Lake City, Georgia took out a $450,000 mortgage on their post-Extreme Makeover home to start a construction business. Unfortunately, the business flopped and the property has dallied in and out of foreclosure (of course, this was entirely their decision).
It should be noted that during ABC’s Extreme Makeover heyday, they did sometimes collect funds to help with additional costs, such as paying off the old mortgage on the demolished home.
Money Reality #6: You’ll Probably Have to Miss Work, so There’s a Potential Decrease in Pay
When you are chosen to be on a reality television show, it goes without saying that you’ll have several days – potentially stretched out over weeks – of filming. Depending on the shooting schedule and on your employer, you may or may not be paid for the days of work you’ll be missing.
Money Reality #7: Possible Income Tax Consequences
When you’re given a financial improvement or benefit, you can generally expect to be taxed. And I don't mean increased property taxes (here's how to fight your property taxes). I mean increased INCOME taxes.
For example, after Cenate and Wendy Pruitt’s $20,000 exterior renovation, they were issued a 1099-MISC to report the improvements as income.
Some home shows suggest refinancing the new asset in order to pay what’s owed to the IRS (see Money Reality #6).
One show in particular has found a loophole around this as far as home renovations are concerned: Extreme Makeover: Home Edition.
According to LawProfessorBlogs.com,
“[u]nder section 280(A)(g) of the Internal Revenue Code, if a taxpayer uses a dwelling as a residence and rents that dwelling to a lessee for a period of less than fifteen days, the rental payments are not included as income for tax purposes.”
So this show decided to make a lease agreement with the new homeowners that lasted under those 15 days, with the home improvement costs acting as rent paid. This resulted in a tax-free transfer of value to the homeowners instead of having them get hit with a huge income tax bill.
There you have it, folks. What do you think – is it still worth it to try to get on one of these TV shows that remodel homes for free? If you were to do so, what would you like renovated?
Amanda L. Grossman is a writer and Certified Financial Education Instructor (CFEI®), Plutus Foundation Grant Recipient, and founder of Frugal Confessions. Over the last 17 years, her money work has helped people with how to save money and how to manage money.
She's been featured in the Wall Street Journal, Kiplinger, Washington Post, U.S. News & World Report, Business Insider, LifeHacker, Real Simple Magazine, Woman's World, Woman's Day, ABC 13 Houston, Keybank, and more. Read more here or on LinkedIn.
Hi my is Ricky me & my wife bought our home in 2019 when we had our inspection the in inspector wasn't able to get under the house all the way but the home owners fix that but the floor joist fall down just one so they said they fix it was a lie come find out that everyone of the jo is rotten and in bad shape now everything going bad need some help on a fixed income
You know, I'm a single mother of 4 with a broken back, neck, tailbone and heel also with displaced hips... I'm on disability because of it and because of PTSD caused by 20 of domestic violence. Recently lost almost every male patriarchy of my bloodlines... And yes it's difficult to climb back out of the hole I put myself into, I can only afford small renovation projects every month but I've been slowly putting my own house back together after I shutdown for nearly 6 months... But you don't see me asking for help although by all means I am eligible for every home improvement show. It is absolutely ridiculous that you batter and beat these people who chose to help others have a better sense of security and self-esteem.
Hello, I bought my house in 2004 new, I did a few things myself trying to get my house looking nice I started with a back deck I finished the first year, I started to refinish the basement and during that time I had a bad accident at work back in 2005, had serious injuries .took a year to get back walking again got back to work then from the fall I ended up getting chronic regional pain syndrome.the worst pain disease listed on the McGill pain scale. It took 3 years to get a diagnosis by that time I was bed riddin, and it spread throughout my whole body .I've been fighting it for like 18 years.I can't do much of anything anymore. Severe pain and horrible sickness all the time. Id love to be able to work on my house but It's hard for me just to get up. I want my wife to have a nicer bathroom, better flooring.just an updated facelift. I keep saying im gonna get better and I'm gonna do it all. but it hasn't happened . Im getting worse .
so that's my story Thankyou for reading it .
Hello, with all my heart, we are raising 4 children full of love and respect for animals. I have found myself in many difficulties and debts to be able to continue paying for the house and make the renovations that they wanted. My children love this place and it would hurt them to leave here. In this place I have helped many people to have a transit place so that they can get their house with their family but we need help
The house was originally built in like the 40's. My parents tried upgrading it but my father got really sick. My dream is to see the house finally look nice for once.
My childhood home really needs a face lift
I am a 46 year old women already on disability. I used to be a RN. I was a very hard worker as an RN. A lot of weeks was an 80 hour week. I taught CPR, advanced adult and pediatric life support. I worked in various places such as orthopedic and pediatric. I was also certified for moderate sedation, which pretty much knocks you and for a procedure and help you to come back to. I have had over 20 surgeries on myself. I have COPD and have to use oxygen with other multiple diagnoses. I have 4 boys (one being autistic) and 3 step kids. Some of them are out of the house. I feel like I have failed them by not giving the house to them they absolutely deserve. It would mean the world to me if you could have someone help me. My children and myself are in badly need of this renovation. Thank you for your time. I appreciate it.
Hello, I am looking for someone to help my mom and dad. They have a beautiful home located in simi valley, Ca. They have always wanted their house renovated, but my dad works to help me to pay for my education. He can't afford to renovate his house. The house was built in 1976. so there is a lot of old wood that is rusty. I hope you give my family an opportunity.
Looking for help my mom on getting her home renovated to safely live in. She has water leak under home due to needing new plumbing, recent storm tore roof up causing leaks and she has been without heat off and on for several years. Carpet has been torn up so there’s nothing but plyboard down and this doesn’t help with no heat. She 68yrs old living alone while having bad health issues also. Please help because I can’t stand seeing her live like this and I don’t have means to help.
Well my dad worked his while life as heavy equipment operator, I remember him being gone before we woke up and being home by 530 6. Sometimes later and always so tired. My brother and sister had a poor childhood, small single wide trailers. We had to share clothes. But he managed to make payments on this 3 acres and finally get a 50 k loan for the smallest log kithome. We all had to chip in and help built it lime Lincoln logs.
Years later that same old 500 square foot log cabin has been refinanced 3 times and now he is 70 and too old to work. After his social security check and payment to the bank he is broke. Never got to see his home get finished.
He won't askfor help and he did it so that if anyone in the family ran into trouble le they always had some where to go. His heart is huge but economic hard times left his home and us who live there in shambles. In Jesus name will u send this story to the shows and see if we could get fixed up to share family.
Waiting to get my dad house remodel please give me a chance
Wow I don’t think if my home was totally renovated, at no cost to me!, I would be whining about my new probably, totally warranted tax appraisal. I would also not be whining about dead plants.
Wow someone remodeled your house, gave
you new kitchen cabinets and countertops, you are crying because your pillowcases were taped for appearance sake!
The only legit complaint is the person with the sewer issue.
Most of these homeowners could sell their house for substantially more money. Even more just to state that their house was redone and featured on one of these programs. Your whole premise is extremely flawed. I do not think I will bother to check anything else on your website.
Apparently you have no financial background.
Thanks for your thoughtful response. I did mention at the beginning of the article that it's a huge benefit to have your home renovated by someone else, when I said, "Of course, in general it’s a huge benefit to have your home renovated or your project rescued by professionals — sometimes paid, sometimes not paid by the television studio (does HGTV pay for home renovations?) — but it’s not all roses and red velvet cupcakes."
Hi I bought my home in 2005 it’s a 1920s home so it’s over 100 years old we’ve renovated over the years I’m a family of four and we have just outgrown our home . we need to update and I need help with my home thank you Margaret S
I need a 42 year old mobile home that needs renovated. I am a 62 year old woman who is retired who does not have the money to do this. New mobile homes are as much as building a House. I am on 2 1/4 acres. I only pay taxes & insurance. I owe this free & clear.
I also have a child who lives on his own with wife & he needs some renovation. I have taxes & insurance & it is pd with mortgage payment. My son is on a fixed income & a wife who is ill ,& can't work.
Please let me know what or if you can help me
Thank you
Hi my uncle bought some land with a house on it for me and my kids to get it fixed up but I’m on social security and I can’t afford to get it fixed up it needs allot of work. Me and my two kids have a rare genetic syndrome called Glucose transponder deficiency syndrome type 1 my daughter she will be 4 in August she had 4 different types of seizures and my son will be 10 in August he just has migraines from the Glut1. Right now we live in a little 3 bedroom mobile home with absolutely no storage space or closets. This house that needs to be remodeled it’s very old and we would have a actual house and my kids would live in a actual house with room to move. Please help make our dreams come true.
Hello I need to get my mother house fixed been trying for the last three years she in a wheel chair it need the floors parts of the house needs to be jacked up she can’t go outside the walk way is broken can’t ride her chair the house needs to be retired the doorways in the house needs to be widened also it’s needs painting and some plumbing work she’s 85 lost dad in February of this year the house is paid for the bathroom needs to be widened please help her I can leave my number
I was wanting to build a cabin or home on our lake property. We own a large lakefront project to consider.
I need safe place for son to live mold free of allergies we have floor that is rotting trying to keep up but I'm no longer able to work. Need help.
I want to run away! My house has major problems. It was given to me by my family. It is the family home. I have raised my two boys here. We had an earthquake here in our town and it cracked my foundation. The property used to be a resort. It was called
Mineral Springs. The owners considered the water to have healing properties. I will list what is wrong: ROOF LEAKING
( NO RUNNING WATER )
HOLES IN FLOOR OF KITCHEN/ LIVING
ROOM.
FLOOR JOIST DECAYING
NO BATHROOM OR SHOWER.
BACK WALL OF HOUSE FELL DOWN
WIRING/ BREAKER BOX BAD NO 220
CEILING FELL IN LIVING ROOM
Rats destroying everything I had to get metal file cabinets for my belongings.
I am on disability so I am struggling. I need help .Please help me save my mommas house and our family home.
I want to have a kitchen put in my utility room on concrete that way if it leaks it won't rot the floor or build an outside kitchen.
I want the shower and bathroom to be separate from the main house. I am so tired of this happening. I need help please.
I am a 65 year old elderly person who live alone in the town of Cape Charles, Virginia. I need to have my two bathroom remodel, kitchen remodel and turn my game remodelinto a bedroom, because I have ostro arthritis and asthma. It's hard for me to climb the stairs night. Contractor promised to come and look at the house so I can try to get some help but they don't show up. I am in desperate knew of some help. I hope to try to bring my sister home from the nursing home but right now, I have no where for her to stay because she can't climb the step either. Please help.
63 y r old who's separated husband is terminal with parkinsons from his service in Vietnam needs help with small hone repairs, roof. Floor, paint, so when he passes I can jeep house. It's all I have. I'm not well either n on 700 a month I can't even clean my carpets
Who can help
When we bought our house 6 years ago it started falling apart. Now we look at it and we have to put $60,000 more into fixing the house.
We would rather have some one come to our home and do a remodeling job. I have always helped others, but since I am disabled now and so is my mom we can't really do much or afford much. The only one paying is my husband.
In our case it's more like..HELP..!! OUR HOUSE IS WRECKED..!!
The center section is over 100..my best guess is 130yrs old. It originally was built as an office building, then added on to later on when turned into a home. We moved into it in June of 1986. A couple years after that, 2sisters stopped by and was telling my husband they were born in the house and they were in their 80's..
We turned the front porch into a bedroom and entryway with a small porch. Then in 1994 or 95 we had to add on again, this time the back.(by then we had our 4th child,other three were in school first was going to graduate..) Another bedroom and just a backroom where we put a wood stove, which ended up being to heavy for the floor.. A problem was found not long after that there wasn't enough of a slant on either roof and fro,t and back both leaked between the original and the additions which by the,time we got them fixed the damage had been done....front is good... The back has had more damage do to a shopfire and firemen were spraying the back of the house. Outside wall dropped a little but it was just enough to cause another leak between rooms and by the time we found out........(seeing there was no one in the back bedroom anymore..) We have a lot of water damage. The home is entrusted to me and it set to where I can live here the reat of my life or....(untill it falls...)we are on disability and can't afford to move...theres plenty of land to build another house but ........... (I think we could move that far ,idk what to do..)
I have a small house and need a bath room upstairs. It's a fixed attic and the roof needs to be raised in the back and a bath needs to be added.
We are getting older and our storage is a joke. That was the biggest complaint of this house. There is minimal storage so its always cluttered. Realistically we need the complete remodel to move the main steps and all but that is more then a addition.
I have a home that i would like help fixen it bk up and then giving it to an officer many years iv watched this lady struggle home bills kids jobs everyday life to then add being a cop in that mix.shes a good roll model for the town she is a person that could play mom and be the next best thing to this lady haves never placed judgment down on me no matter what iv done on april 3rd my birthday last year we found out she had cancer and yet she goes to work daily and puts everyone before her self yet again she is that person the world need to make a difference... I would love to be able to take some worry off her. And make it were she ca. Beat this cancer
IAM A 67 YERAR OLD DISABLED FEMSLE .I WAS BED RIDDEN 5 YEARS JUST NOW STARTING TO SCUTTLE AROUND I HAD PROFESSIONAL TO PUT MY ROOF ON IN BED I COULDNT WATCH THOU HE HAD PEOPLE WHO OULDNT SPEAK ENGLISH. I JUST BEEN ABLE TO GET DOWN STAIRS TO GROUND AND ALL MY EVES WERE PUT ON WRONG WHERE WATER WATER WAS DRAINED INSIDE THE BOXED AREA BY WALL .MY EVE HAVE BEEN FLOODED AND FELL TO PIECES TO THE GROUND LSAAT WIND STORM DELIVERED BUCKETS OF DIRT INTO MY BATH TUB, SINK. IAM JUST ASKING FOR DONATIONS SO I MIGHT PURCHASE METAL SIDING FOR ROOF EWHICH IS WATER DAMAGED,EAVES AN ALL OUTSIDE WALLS I WORKED 4SM TO 9:30 PM TO GET MY HOME 7 DAYS A WEEK TILL SUPERVISOR TOLD ME TO CATCH A SEMI HOOD IN -1 DEGREE ICE SNOW TORE MY MUSCLES UP,HERNIATED 3 DISC NOW 67 AND DISABLED DON'T NEED ANYTHING FANCY JUST REALLY NEED HELP TRYING TO GET ENOUGH METAL SIDING TO COVER 32X60 FOOT HOME AND ROOF GOD BLESS FOR FOR ANY HELP.
I am on Medicaid and Medicare I have had 14 surgery's and still have 6 more surgeries to go.so is there anyway I can get some help so sorry to ask I have no money but I believe people watching on TV over here you would get lots of business. Please help me thank you
I am 61 an have an income of less than 800.00 a month..I just moved to Missiouri an my house is in such bad shape I am living without water. I would love to have my ceilings fixed..there is insulation hang down but I can't afford to fix it. However..if it's costing so much after the renovation I would be in a world of hurt. Sadly..not worth it. Boo hoo!!
Hi I am in desperate need of porch repair, siding new windows and repair from termite damage. It was my mom0's home and my health h0a0s declined over the la0st 5 years. Please any help with the repairs is greatly appreciated. Thanks Veronica McCastle
Can anyone help me get on a great renovation house show! Of course the name change is not yet done but i have ? God answers prays.
I have been fighting in court with my third cousins who father became my moms power of attorney then deeded the property to himself while my mom had cancer and i was in college in nj at Rutgers U.. Now years later dad had a stroke passed away. So after 15 years the house is about to be in my name thanks to my cousins wife and five sons have decided to give the property back to me. Its 2,242 sqft. I need it renovated into 7 rooms and 4 baths which includeds a finished basement with entry and exits, steps and out side door. I lived down the street from three major university's University college of science pharmacy, UPenn Wharton Business school and Drexel. These schools are both one block to 8 blocks from my future house. Its a super beautiful hot area. Only two blocks from the famous clarks park, university city area and famous Baltimore ave resturants and night clubs on dollar stroll fest. Philadelphia, Pa housing boom is amazing. The houses on my block start at $350,000 to $450,000 up to one million. My lawyers had me pay the transfer name taxes to the city and state but they have not yet probated the estate of my mom. I am the only child. My boyfriend invested $68,000. I put in $15,000 from student loans. I am about to start a masters degree but i want the property rented out to foreign students attending local schools in the area.
I knew about the income tax implications because of the stories when people would be gifted homes and then couldn't afford gift tax. But some of these others... Eesh. I mean, I know that "reality" is a relative term in reality shows, but them leaving unfinished projects is pretty sketchy.
I'd be cagey about what kind of upgrades we were given, too. There's not a ton of room to expand the house, so not much worry there. But if they wanted to come in and make over our kitchen and/or bedrooms... I'd be finicky -- especially because of summer utility costs here in Phoenix. So I'm probably one of the last people they'd want to work with anyway.
This is bursting my HGTV dreams! JK. I always wondered about the budgets and how couples are able to go over 100k and still be okay with it. It's amazing where you pulled this information from. Thanks for the dose of reality from reality tv!
These shows are for entertainment only
We are in need of renovation so bad. Our lives are miserable stuck in our bedrooms, and no family moments
Hi, my sister lives in New Jersey, she brought a home in December 2018 as of yet she hasn't stayed not one night in her home. She has spent 10's of thousands of dollars trying to move in her home. So many companies has taken her for thousands. The house isn't livable, the floors, the water pipes and so much more needs help. Please, please can someone help her and her young girls. Thank you
First and foremost, the shows are doing what they do to entertain as their first objective. Your home and the needs of your family, as much as they say otherwise, are not their top goal. I think anybody that thinks about participating needs to make sure to keep that in mind.