A Winner's Tale

The 2002 Dream Home HGTV announces 2002 Dream Home Giveaway winner, April 11, 2002. (L to R): Mark McEwen, CBS Early Show Weatherman; Joan Steffend, HGTV host; Milton O'Bryant, 2002 HGTV Dream Home Giveaway winner 2002 Dream Home Giveaway winner, Milton O'Bryant, and his family. (L to R): Joan Steffend, HGTV Host; O'Bryant; Ana O'Bryant; Matt O'Bryant; Lori Tarricone, VP Ad Sales Marketing, HGTV

Since 1997 HGTV has given away a Dream Home to brighten their viewers' winter months. The 2002 winner was Milton O'Bryant, a 49-year-old Texan, who was surprised early one morning while at his job in Midland at the city's police department. O'Bryant entered the annual contest online at HGTV.com on a whim after his wife watched an HGTV special on the Dream Home. The pair toured the house via the Internet weekly, fantasizing about winning. It never occurred to them that they'd pay a personal visit to the home (their home) only a few months later. O'Bryant, his wife, Ana, and their two children, Vanessa and Matt, fell in love with the Dream Home, located on the banks of Chesapeake Bay near Sherwood, Md. In 2003, O'Bryant joined HGTV.com's new Dream Home 2003 message board, answering many questions about his winning experiences between January 4 and February 14, 2003. Some of these answers have been gathered in the following article for your enjoyment.

Q: Why did you enter the contest? And did you intend to sell the house from the beginning if you won?
Milton: I never actually gave much thought to entering at the time. It was something my wife said to do, so I did it. It was after wandering through the virtual tour [on HGTV.com] that I noticed just how exciting (and different) this contest was. I found myself exploring the virtual house every day thinking about how beautiful it was and how great it would be to live there. I never considered winning it a possibility. However, I realized that it was much more exciting than winning cash in a lottery. This was a prize you could see and daydream about. It is unique, and that is what impressed me the most. Then I won it. I cannot tell you how that felt, but I wish everyone could experience that feeling. The problems with taxes, insurance, what to do with it, all faded into nothing more than trivial inconveniences. I could have kept it and rented it out, but that would have spoiled the memories for me. Selling it was somewhat sad, but also fun in a way. The house was mine! I was extremely proud to say "yes, this is my house." It is your cherished property, and you are so proud of it. I would have loved to keep it, but I was also terribly proud to sell it. It is a strange emotion... I am proud of this sweepstakes, and I want everyone to enter. It is a chance of a lifetime that everyone should risk. What happens after you win will be what you decide is best.

Q: When you originally entered last year, did your wife ask you to or did you know about the house from watching HGTV? What was the circumstance?
Milton: I watch HGTV, but usually only those shows that pertain to some project I am working on. My wife watches it constantly. She watched the Dream Home show last year and told me to enter. I did, but did not read the instructions...that's why I only entered one time... I didn't know you could enter more than once. I guess even idiots like me have a chance to win!

Q: Do you remember approximately when during the contest time period that you made your entry? And did your wife enter last year? If so, approximately how many times?
Milton: We entered just shortly after the contest began. Right after the Dream Home show last year. She did not enter last year. We only had the one entry.

Q: Some people are afraid to enter the contest for many reasons. Should they be nervous about the possibility of winning?
Milton: The project manager (you all saw him on the special) is very thorough. If he chose that area in Florida for the Dream Home, you can bet that the area is going to grow and prosper. I would not worry about the house losing value...it will probably go up in value before the winner ever sees it. They take great care choosing an area.

It is almost magical the first time you get to tour the house. When we arrived in Annapolis we were greeted by a wonderful staff that took care of all of our needs. You will eat the finest foods, visit the area's best attractions, and receive numerous gifts and keepsakes. One of our favorite keepsakes was a "snow globe" they had made with a copy of our "Dream Home" inside. They also supplied us with tapes of the original Dream Home program, along with tapes of our winning and our first trip to the house.

To all of you who have been so kind with your compliments and gratitude, thank you very much. I am here to share my experiences so that everyone will realize what a wonderful contest this is. I hope HGTV keeps it up for many years, but that also depends on everyone's participation. There is nothing to worry about by entering. If you win, you will come away much richer both in spirit and financially.

It is a contest about a "Dream Home." Enter it and dream about winning. Dreams keep you alive and happy.

Q: How did HGTV figure out where you worked and how did they get your office people to help with the plan? When you were on TV, you looked stunned as did your wife and son. Was it really a surprise?
Milton: They know where you live, etc., from the entry. In our case, they hired an independent producer to set it up. The producer actually came down here and followed me around until she learned where I worked. She contacted my chief of police and (being cops) they were more than willing to conspire and set me up. Also during this time period, she had her husband call me at work and lay a story on me about having known his now deceased brother many years ago. I, of course, could not remember the gentleman he was talking about (he didn't exist), but during the conversations the producers husband was able to learn a lot more about me through general conversations. This went on for two weeks!

The morning of the live show announcing the winner, I was at my office early for a conference call set up between the surviving brother, sisters, and attorney of the deceased brother (I was told that I was mentioned in his will). I did not think anything of the television trucks at the PD that morning as it is not unusual...thought it was just another story about President Bush's hometown. So I'm sitting in my office at about 6:45 a.m. waiting for this call. One of the lieutenants stops by and tells me the Chief wants to see me upstairs. I declined and explained that I was waiting for an important telephone call. He insisted...we actually argued for a few minutes. He finally convinced me to go, so up I went. I am now standing outside the conference room with all of the cameras and reporters (doors closed, so I can't see inside) waiting for the unexpected. Suddenly I thought that this deceased brother is FAMOUS and they are here to do a story about my dealings with him (I still can't remember him and found no record of him in my old files). I started to panic because I thought they thought I remembered this guy. I was standing there thinking this was going to be the most embarrassing moment in my life (and the department's) when they called me in. What the nation saw on my face the moment I realized what was going on was RELIEF! It changed instantly from the most embarrassing moment in my life, to the most exciting. However, it took my reactions several minutes to catch up.

It was beautiful! I have never been suckered like that before in my life. I can't wait to see how they get the next winner! Good luck to you.

Q: I watched the morning segment where you were surprised at work and told you were a winner. A short time later, they showed your wife and son driving up in your new vehicle. My question is how did they surprise your family? Did they show up at your home after you left for work?
Milton: They got me to the office early with a made-up story. After I left, they sent someone to my house to tell my wife and son that I had won a car. They did not tell them about the home. They asked them to help surprise me by showing up in the car. In the meantime, I knew about the home and they didn't...and they knew about the car and I didn't. It was quite funny.

Q: What was the original vehicle used to snooker your wife? Obviously your wife must have been thrilled with what you did win, but I was wondering if she was disappointed when they said the car that she had come to think of as belonging to you guys was really just a ruse to get her on the spot?
Milton: The car they used for the surprise was just a prop. They got it from the local dealership. It certainly was not a disappointment. We were able to order the car just exactly the way we wanted it. You get to pick the color and all of the options you want!

Q: You've said that HGTV watched you for weeks before telling you about winning... Why?
Milton: The reason HGTV followed me around was to gather information about me, where I worked, where I lived, etc., so they would be able to come up with a plan to surprise me. The contest is run randomly and fairly. All contests are governed closely, so they cannot orchestrate the outcome. It won't matter if the chosen winner is rich, poor, liked or disliked...they will still be the winner.

Q: What was it like the first few days after you won? What were you feeling and going through? Did it feel real? Any funny tales?
Milton: It's like a dream for quite a while. You know you have won, but it doesn't seem real. You are kind of a celebrity everywhere you go. People recognize you and want to talk to you. Of course the media is there quite a bit wanting interviews. Everyone we ran into was very happy for us. There was no jealousy or bad feelings...just happiness. We spent a lot of time on the virtual tour on HGTV.com after learning about winning. I think we memorized every room and piece of furniture in the house. It was really a lot of fun dreaming about it and wondering what it looked like in real life. It never actually seemed like it was our house until the day after the televised tour. We went out with the cleaning crew the next day and helped clean it. THEN it felt like our house!

Q: How much time did you get until they flew you out there for the four days? And did you ask if your kids could come or did they offer?
Milton: We had about three weeks from the time we were notified until we went up to the house. The rules state that HGTV will take care of the travel arrangements for two, but they took care of everything for not only me and my wife, but also both of my children (actually, they're both grown). They really bend over backward to make it a memorable moment. I have never met a nicer bunch of people!

Q: I read in the rules about the trip to the Dream Home and how it had to be during a certain time Was HGTV flexible to your family's time schedule?
Milton: In our case, they were not very flexible since there was going to be a live TV program from the house. We had to be there by that date. HGTV handled all of the travel arrangements, but if there were certain requests or requirements from the winners, I am sure HGTV will do everything possible to meet those requirements (as a matter of fact, they ask you in advance about health issues or diet requirements). According to the rules, they provide travel for two, but they threw in free travel and hotel accommodations for both of my kids also. The rules are there to make sure everyone's rights are protected, but HGTV is free to do MORE than required by the rules if they so desire. And they usually do more! HGTV really does go out of its way to make it the most memorable trip of your life. They will help you with any problems you may have.

Q: What did the trip to see the house entail?
Milton: HGTV provided airline tickets to Baltimore for me and my family. They gave us instructions on where to go once at Baltimore Airport, and they had people there to meet us. They had already rented a vehicle and helped us load it. We decided we could find the hotel on our own, so we headed out without any escort. When we arrived at the Annapolis Marriott, they had a reception table and staff waiting there to greet us. They provide you with a complete agenda for your stay, including free time for yourself. They provide all transportation, meals and everything else. They wine you and dine you like you would not believe, plus they have interesting trips set up. One of ours was a yacht trip on the bay! We visited historical sites, shopped, and everything else you can think of. The one thing we did not do too much of is sleep.

Q: I believe that you mentioned that you were able to visit the home and that HGTV threw a party at the house. Was there a party?
Milton: HGTV had a big catered party at the house the day we first saw it. It lasted all morning, then they took us on a yacht trip across the bay for the rest of the afternoon. They sure know how to treat you!

Q: Wondering if after your four-day 'visit' you can stay longer as a vacation, thereby delaying your return flight home?
Milton: You could stay longer at your own expense, but unfortunately the insurance HGTV carries on the house is very strict about people on the property. You would not be able to stay alone in the house. They have caretakers taking care of it until it is turned over to you. We decided to go out with the cleaning crew to our home the day after the TV broadcast and party and help clean. Up until then, it never did seem that we really owned the house. Once you start cleaning and straightening, THEN you know it is really yours! It was fun. It was the first time we were able to spend time looking everything over and exploring.

Q: Did you get to meet Linda Woodrum [interior designer] and her staff? Did you have an opportunity to ask them questions and get the details on how certain things were chosen?
Milton: Yes, you get to meet everyone, including the HGTV president (very nice gentleman). You get to meet representatives from all of the sponsors, and they are a lot of fun. They take you on a complete tour and explain everything to you. Everything is warrantied by the makers, including the house itself by the builder. It's just as though you had the house built yourself. They do explain how they decorated it and why. In our home, they even went to all of the local antique stores and spent quite a bit of time finding "just the right piece." You get to meet the architect, the decorators, etc. It leaves you with a great deal of respect and admiration for the Dream Home. They put a lot into it, not just slap it together in time for the contest.

Q: How many days did you get to stay in the house before you sold it? And did that mean you had to purchase insurance?
Milton: We never did spend the night in the home. We sold it before getting a chance to go back up there. We did have to provide insurance for the house once it was signed over to us, but it was only for about a month.

Q: Did the house you won have the same challenges that this one does -- i.e. very remote location, well water, septic system and satellite communications? I am soooo suburbian that I don't even know how a septic system works.
Milton: Yes, our house was remote. It had wireless Internet and a septic system. Don't worry about these. The wireless Internet is actually quite fast, but not quite as good as cable. As for the septic tank, just remember to have it pumped every couple of years and you will never notice the difference (every two years is conservative -- you can let it go much longer). Living in the country is much more fun (and much less scary) than you think! It is really quite wonderful! I grew up in the country...everyone should!

Q: I know that the house was fully furnished, but what about televisions, computers, etc.?
Milton: Our house was filled with stuff that was not ever mentioned. I bet this house will be the same. There were televisions, but there was no computer. I am not sure I can even begin to remember everything, but I'll list some examples. The office was filled with everything an office would need: paper, pens, staplers, hole punches, pencils, etc. And it looked like about two years supply. There were picture frames, vases, paintings, knick-knacks, icemakers, microwaves, furniture, and at least three vacuum cleaners. There were towels, washcloths, bath products, laundry detergent, potted plants, silverware, china, soaps, bowls, pots and pans, and food. The kitchen was STOCKED with food and coffee. We had to give away a lot of food before we left since it would have spoiled. The canned and sealed goods we left there. We had a local plant store in the nearest town come out and pick up all of the potted plants so they would not be left to die. The store owner was very gracious and left empty vases and pots in exchange for the planted ones we gave him. There were at least a dozen or more clocks, brooms, assorted cleaning supplies, and even his and her bath robes. I wish I could remember more, but I have to tell you that the house was so fully furnished it was unbelievable!

Q: I read that HGTV provides professional assistance in making the decision--to keep or to sell. Please share some of the facts and information that were told to you that guided you to a decision.
Milton: It can be a little intimidating when you have never experienced anything like it. HGTV will not actually give you suggestions, but they have many experts there that can answer your questions. They can tell you what your options are, but they won't actually suggest what you should do. The easiest way to look at winning is the total prize. No matter what your prize is worth, you will only owe a percentage of its value in taxes. Mine was about 38.6 percent. You will not owe more than a portion of what the prize is worth. If you win, HGTV will help you through the process. They will have people who will answer all of your questions. If you hire a tax consultant to help you, you will not have any problems. It will boil down to what you are wanting and able to do with the house.

Q: Why did you sell your Dream Home?
Milton: We sold the home for numerous reasons. I like Texas and had planned on living in the hill country when I retire. My family is mostly there. Had we decided to keep the house, we could have mortgaged it for the taxes owed, but then we would have had another mortgage payment...not something a cop can usually afford. However, there was a gentleman there hired by HGTV that leased out homes in that area. He could have leased the home out and made more than enough money to cover the mortgage payment, with a little profit left over for us. But I am almost 50 years old now, looking forward to retirement, and was not interested in starting a rental business half way across the country. That is why we decided to sell. So here we are, much richer, and with memories that will last a lifetime.

Q: What happened when the house was turned over to you? Did you hire a realtor?
Milton: The house is turned over to you when you win. There was no cost associated with this. Selling the home, we used a realtor. Her commission was around $78,000. She was worth every penny of it! The buyer wanted the house deeded to him as opposed to simply turning over the LLC, so we had to pay closing costs when the house sold...another $18,000. The point to remember is that after all these expenses and taxes, we still walked away with over $700,000 plus the new car. That's why I am trying to convince everyone not to worry about winning. All the talk about taxes sounds scary, but it is definitely worth it.

Q: What were your costs upon assumption of ownership?
As for closing costs, it is actually neat the way HGTV sets that up. HGTV sets up a limited liability corporation (LLC) to build the house. The LLC's only asset is the house and land. When you win the house, HGTV can simply sign the LLC (and thus complete ownership, free and clear, of the house and land) to you so you now are the sole owner of the LLC and its assets (the house and land). In this way, you do not have to pay closing costs or transfer taxes. There are no liabilities or liens against the LLC when they transfer it to you, so you own the house free and clear. You can elect to have the house deeded directly to you if you prefer, but then you would incur the expenses involved. In Maryland it would have amounted to about $35,000. There are no problems associated with owning the home in this manner that I am aware of, and it does not affect your ability to sell it if you want. You do not need to hire an attorney to accept the prize, but it is always best to have one look over all of the paperwork just to be safe. A tax consultant is a good idea, though.

Q: I was wondering if the transfer of ownership happens during the four days that the winner is sent to visit the home or does the actual transfer happen at a later time?
Milton: It happens later on. The four-day tour is just fun and entertainment. All of the paperwork and transfers take place a few weeks later. The car, if it happens the same way as in our case, you will get to order. A representative of GM will send you the information and you get to pick out everything on the car just the way you want it. If the options you pick go over the listed value of the car, then you have to pay the difference. However, the car value is for the top-of-the-line, so it is tough to add any more to it. It's pretty close to having everything already.

Q: Did they fly you back a few weeks later to do the ownership transfer or did that happen closer to where you live?
Milton: Actually, everything was done right here in Midland. They Fed-Ex the paperwork and you sign it. It is good that there is some delay in taking over ownership since it gives you time to get insurance, set up electric and gas and telephone service, etc. The whole thing works out quite well. While you're getting everything set up, HGTV is still taking care of the house and insuring it. They have this well thought out. The transition is quite smooth.

Q: Could you explain the tax situation of the house you won?
Milton: The breakdown is a little complicated. The original federal tax liability for the listed value of the total prize was about $434,000. You pay a set amount for the first $350,000 and 38.6% for the amount above that. We made additional profit on the sale of the house, so add 38.6% for the profit amount. Maryland is still in question. They were not sure themselves how to tax us, so we paid the maximum amount we could possibly owe and will file a return. I believe we sent them around $61,700. We should get some of that back. We will be able to reduce our federal tax liabilities with deductions of the Maryland tax, business costs associated with selling the house, etc. I figured we will come out well above $700,000 when it's all done. THAT is a wonderful prize, even though we did not keep the house! But there is more. The prize means a lot to us, so don't get me wrong...but the most fun was actually winning and meeting everyone! Whichever of you wins this year, it will be the most fun and exciting trip you will ever make!

Q: Do you pay state income tax for the state you are residing in at the time you win or for the state where the prize is located or both?
Milton: We had to pay Maryland state income tax. Texas does not have an income tax. You will owe the Feds wherever the house is, but if the state in which the house is located does not have income tax, then you don't pay the state. However, since I am not familiar with state income taxes, I don't know if the state YOU live in will try to get their share if you have state income tax where you are currently living. Interestingly enough, when we took delivery of the Trailblazer here in Texas, we only had to pay a $10 gift tax. The prize was not considered "purchased," so no sales tax. Saved about $2,300 on that one. The best advice I can give the next winner is to get a local tax consultant involved as soon as you can. They are much less expensive than an attorney (which you should probably hire later on JUST to check all of the legal documents). The tax consultant can figure out all of your tax liabilities, even involving other states, and advise you on the best way to handle everything. Mine charged me only $800 for about six weeks of work and consultation.

Q: If you had your taxes paid, would you have chosen a different path regarding the outcome of your decisions?
Milton: Thank you for your confidence in me. If I could have afforded the taxes (without having to lease the house out to make the payments) I certainly would have kept it! It was the most beautiful house I have ever been in. I would live there all summer, and Texas all winter!

Q: Were you contacted by realtors wanting to represent you when you arrived in Maryland or did you have to seek them out?
Milton: We contacted the Board of Realtors in Maryland and got a list of area realtors. We then called several and made arrangements to meet with them while we were in Maryland. We chose Bonnie because of her honesty and straightforward responses. She was very professional and energetic. We just went with our feelings and she was the hands down winner.

Q: You mentioned that you had numerous offers and were able to turn it around quickly. Where did these offers come from? Do you think it was the location of your particular Dream Home? Do you think people were tracking the contest in order to contact the winner?
Milton: That could very well be. I think much of it, though, was due to the publicity. Our win was the first one announced live on a nation-wide television show. We received much more publicity than earlier Dream Homes. I hope this year's winner receives the same...it was a lot of fun.

Q: Did you interview your realtor during the four days while you were there in Maryland as guests of HGTV? What criteria did you use to evaluate her as your possible choice?
Milton: Yes. We called several realtors in that area and set up appointments before we went. Our only criteria was honesty and forthrightness. Bonnie Lyons (our choice) beat the others immediately and completely. Great lady.

Q: If the winner originally wants to keep the house after winning, but decides a year later to sell, do you think that would be a problem? Did your real estate person give you any information on the home's value after the excitement generated by the contest wears off?
Milton: The gentleman we spoke with (his business was rental property in that area of Maryland) was quite sure we could have made the mortgage payment, expenses and a little profit left over. That was if we had decided to take out a mortgage to pay the taxes. I think I would find someone similar in the Dream Home area and see what they say. The winner will have a lot of experts to discuss the possibilities with, so there should be numerous options. Regardless of what you do, you should come out way ahead. I don't think the previous winners had the same amount of publicity as we had. I think it will continue to just get better for future winners.

Q: Considering the high level of quality that went into all of the furnishings, the building materials, and the workmanship of your Dream Home, do you think that it was under-valued?
Milton: I think so. The furnishings and construction was top-of-the-line. I was very impressed with everything. Combine that with the national attention these homes are getting now and you have some really marketable real estate.

Q: At what price did you list the house, and how much did you get for it?
Milton: We sold the home for $1.3 million. That was with all of the furniture and appliances.

Q: How long was the house on the market, and how close to the value by HGTV was the selling price? How much of the furniture did you keep?
Milton: The house actually never made it to the market. We had several buyers waiting before we even took possession. The house sold for well over $100,000 more than it had been valued. We sold all the furniture with the house.

Q: Did you keep the furniture? And if you did keep the furniture how did you actually get it all back to Texas?
Milton: We had buyers lined up waiting for the house. It sold immediately. It was a little difficult selling all of that beautiful furniture, but it helped bring more for the house. Besides, all of the Ethan Allen furniture would have looked a little out of place in our current home...sort of like putting a rose in a trash can. We kept the Trailblazer.

Q: What would have been the disadvantage of loading a moving truck with all that furniture and hauling it down to Texas? It seems to me that the guy who bought your house would have paid about the same price for the house without the furniture.
Milton: I don't think there would have been any disadvantage. It's your furniture, so you can certainly take it with you if you like. Our buyer wanted it just the way it was, so that's the way we sold it. Otherwise, we would have taken the furniture with us.

Q: I know you have said that you and your family took some mementos from the Dream Home to remember this lovely experience by, and I am anxious to know what they were?
Milton: My wife and daughter each kept one of the clocks. My wife also kept a picture and a few picture frames. We kept the little stuffed, squeaky crab toy for our dog. They are now proudly displayed at our home (and the dog LOVES the squeaky crab!). We also have about 300 pictures of the trip, three videos and a scrapbook of just about everything that crossed my wife's path in the four days we were there.

Q: Do you have any regrets that you didn't keep the house?
Milton: Yes, to some degree. We really loved the house...almost didn't get my daughter to come back home. It would have been wonderful to keep it, but then I think of all the other wonderful things we have done (and will be able to do in the future) with the money we made from the house. We helped my mother out financially, paid off my two children's cars, and are already planning our own Dream Home somewhere in the Texas hill country for our retirement. I have no regrets whatsoever. However, I would like to help the next winner keep their Dream Home if they wanted to. There are many people on this message board that want only to live in this home. I would like to see them do so.

Q: What did you do with the money made from the home's sale?
Milton: We weren't completely practical. We paid off all of our debts, paid off my two kids' cars and gave my mother some money. We kept about $600,000 in investments.

Q: Did you and your lovely wife have a difficult time deciding what to do with your investments? Did it cause any strain within your relationship?
Milton: Not at all. We both have the same goals for retirement. We shopped around and found a good investment group that had an excellent record, and the rest was easy.

Q: Other than the obvious financial changes, how has winning the home changed your life?
Milton: I would have to say: profound gratitude and the realization that good things do happen when you least expect them. One of you out there is going to be the next winner. In a few months, you will find out you own this beautiful house. Isn't it exciting just thinking it might be you? It gives us all something to hope for and look forward to.

Q: I am curious what kind of stardom comes with this house? Did you get bombarded by people wanting money from you, any companies ask you to do a commercial or help them with advertising, say your local building contractor, etc.?
Milton: Other than magazine and newspaper interviews, there really was not that much media attention after the show. We were contacted for several weeks afterward by the same magazines and newspapers to do some follow-up about us and the house, but that's about it. We did do a guest appearance type commercial for our local cable provider, but it was only a "here's the winner" type commercial. No fame. That's probably good, since I am not exactly the type of personality for television.

Q: If you had it to do all over again, would you do anything different after winning the house and other prizes?
Milton: The only thing I would do different is make SURE I got back up there to stay in it for a week or so before selling. Work obligations prevented us from doing so.

Enter the 2008 HGTV Dream Home Giveaway for a chance to win a home in the Florida Keys!