In each episode, two sets of neighbors redecorated one room in each other's home. Each two-person team had two (later, three) days, a budget of US$1,000, (later $2,000) and the services of a designer. Both teams in early seasons shared one carpenter, while later on, each team had a carpenter. Although the producers generally allowed the teams to go over budget slightly, there was one instance when a designer went $150 over budget and the producers forced her to return a rug she bought for the project.
The teams have no say over what happens in their own homes, but they are able to give input into what happens in the home they are redecorating. The teams are not allowed to enter their own home for the duration of the show, and the transformed rooms are revealed only at the end of the final day.
Ty Pennington, one of the show's original carpenters, later hosted Extreme Makeover: Home Edition on ABC.

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