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Buying commercial real estate is more complex than residential

Both residential and commercial real estate are bought and sold often, but the process and complications involved in each type of sale differ. Purchasing residential property tends to be a little bit easier and there is a fairly established procedure for purchasing residential property. Residential properties also usually involve one person or a family and the sale prices are much lower making the financing side much easier to handle often times.

However, commercial real estate purchases have some more complications. One complicating factor is that commercial properties generally cost much more because they involve much larger areas than typical residential real estate lots.

Commercial real estate is often valued higher since zoning laws and other considerations limit the amount of commercial real estate available. Also, before purchasing commercial property generally the company or person will need to have engineering studies completed, analyze permitting requirements and zoning in the area, and other studies to ensure they will be able to use the property for their intended purpose. All of these aspects take time which adds length to the process in addition to complications.

Real estate transactions occur almost every day in Missouri. The type of transaction that takes place differ though and the complications that can arise depending on the type of property being purchased also vary. Commercial real estate transactions tend to be more complicated and take more time to complete. Both before and during the process it is important for the buyers to understand these complications and consulting with an experienced attorney may be helpful.

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