Is financing sensible/feasible?

A house that is divided among 3 children is probably worth nothing. Unless it is a multi-family house in Munich.

well, even if the house only brings in 150,000 EUR, that's 50,000 EUR each, and at such amounts, everything plays a role

Hello,

I am also a little worried that as soon as the child is here, the woman will go part-time and money will be missing to pay for daycare / nursery. There won’t be any vacation or big partying.

Also that you fixed 175k for only 10 years. Normally, with the total amount, you should have at least calculated a full repayment over 20 years with 1.9-2% repayment to be at least safe on the financing side.

Thank you very much for the quick answers. I will now try to answer all the follow-up questions.
It is not a forced auction, but a married couple who are friends of colleagues and are getting divorced. I (28) am in a management position (only for a year, salary increases with each year of service). The job is secure. She (30) is an educator with an annually increasing salary. Her job is also secure.
The acquisition costs are actually already included.
The decreasing income meant that there will be only 67% available for one year and then possibly 40-70% once the child is born.
The €800 include the following:
€400 for food/drinks/other essential necessities
€60 for fuel
€50 for sports
€10 membership fees
€80 eating out
€20 sports equipment
€50 clothes
€100 miscellaneous
€30 hairdresser
There are 2 cars, one of which is a company car and does not cost a single cent.
KFW apparently does not work because the builder has already "used" this, we were told. The offer is from a bank, Volksbank.
It is almost the dream house for both of us, optimal location, since a parent lives only 500m away and a workplace is easily reachable by foot/bicycle (1km). Other connections are also perfect (DB, highway, etc.)
However, we definitely will not finance the house "at all costs," one still wants to live a little!
Thanks again for your answers and already thanks in advance for further suggestions!

I consider the rate to be clearly too low.

Dividing it into two loans with different interest rate terms doesn't make sense to me.

With your wife's income at 40%, your expenses as shown on page 1 are no longer covered.

Owning a car also causes more costs than just fuel. I don't see any reserves (for both the house and other things) with you. I consider the expenses to be too low. Have you already kept a household budget?

At the moment, I would rather tend to think that you cannot afford it.

Calculate it for yourselves, take a critical look at your living expenses, and get an offer with a long fixed interest rate. Plan for 20-25 years, maybe even 30. You can also try using the various calculators on the internet. Just go through your bank statements from the last 12 months to get an overview.