A: The purpose of your down payment deposit is to obligate both you and the home builder. If you refuse to complete your purchase, you might lose your deposit and be liable to the builder for any breach of contract damages.

Please read your purchase contract to see what it says if you fail to complete the purchase. A year from now, you might have a completely different attitude.

If you are absolutely certain you don't want to buy that new home, you might want to sell your purchase contract if it is assignable. For full details, consult a local real estate attorney.

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Q: My mom said she read in your article that when we make a home purchase offer we can add: "This purchase offer valid for $3,000 above any other competitive purchase offer" (or something to that effect). How should we word it? The Realtor we are working with says that is illegal Stacy H.

A: In a very competitive local "seller's market" for homes (where there are more qualified buyers than homes for sale), you can make your purchase offer the winner. However, the seller won't have to accept your offer, especially if a lower price bidder appears better qualified.

For this reason, be sure you are pre-approved (not just pre-qualified, which means nothing) in writing by an actual mortgage lender. I suggest a phrase such as "In the event a higher, legitimate purchase offer is received for this property from another qualified buyer within 24 hours, I offer $5,000 more."