Average and median MLS prices were the highest ever in May 2014 for Calgary as demand continues to outstrip housing supply in the city. Limited supply coupled with continued economic growth combined to post price levels never seen before.

Median prices rose to $435,00 according to CREB statistics. The average sale price was up to $486,537.

The number of sales is second only to March 2007, the heigh of the most recent housing boom in Calgary.

With so many looking to purchase, are you doing what it takes to protect yourself when it comes completing the largest transaction in your lifetime?

With record low interest rates seemingly stuck at record lows, more and more people realize that money is cheap. But that also puts many at risk. If you can marginally afford a home today, rising house prices surely don’t help matters, then when interest rates do inevitably increase, the cost of home ownership will go up as well.

Many could be caught with too much debt.

Not only should buyers be aware of their debt loads, buyers (and sellers) must ensure they are protecting their own interests in real estate transactions. We’ve heard of buyers trying to save marginal money by forgoing professional legal fees to review legal documents like condo board documents, important information that could reveal significant burdens for the future. Others buyers forgo necessary house inspections and purchase properties ‘as is’.

For sellers, mitigate your risk by ensuring you are protected if a buyer’s financing falls through. This is particularly important when you have conditions on another property waiting on your own sale.

A Realtor should assist you through the process, but ultimately it is your own lawyer that is charged with the responsibility to look after your interests during a real estate transaction. The cost should be an expectation built into your purchase or sale, amounts to very little in comparison to the cost of the new house, and saves on any possibility of future unexpected issues.