If you take the basic rule of thumb that taxes are about 1/3 of the prize value (and of course, this varies from person to person - consult your tax adviser for your individual rates), the taxes on a $2 million prize come out to $666,667. The home and property alone are estimated to be worth $1.8 million.
This means that if the average person sells the house for just the estimated price, he or she ends up with $1.2 million cash PLUS $200,000 worth of furnishings, a $3,000 Doggie Dream Home, and a new car worth around $50,000.
And that's not even considering that the prestige of the Dream Home makes this a hot property to buy, which could push up the prices even higher. Or the other bonuses, like staying in the Dream Home until it's sold, free trips to visit the home courtesy of HGTV, and more.
Does the Dream Home still sound like a bad idea?
For more information, see Could Taxes Mean the End of the Dream for HGTV Dream Home Winners?