Sale of current house / loan repayment and new construction with financing

Hello everyone,

the following topic is giving me a bit of a headache. We currently still own a house with an ongoing mortgage. However, we now have the unique opportunity to acquire a plot of land and could build a new house on it. The condition for this, however, is that we sell our current house. This is not a big problem in itself, since people around here are investing like crazy in real estate at the moment and our house is well maintained and only about 10 years old. I am just unsure about how we should handle the sale of the current house, the signing of the construction contract for the new house, etc., and what sensible order we should proceed in.

Among other things, I have the following questions:

[*]How do I arrange the repayment of the loan with my bank and the new financing?
[*]I have to sell my old house to pay off the loan, but at the same time I still have to live in it during the construction period. How can this be arranged with as little additional financial cost as possible?
[*]What does the contract arrangement with the builder look like? Are clauses like "contract only takes effect if the old house is sold" common?
[*]If I sell my current house, I have a moving-out date, which in turn must be guaranteed by the builder as the move-in date for the new house. Is this common?
[*]In general: What steps need to be done when?

As you can see, lots of questions. I would be happy if one or the other who may have been in a similar situation could share their experiences and solutions here. Many thanks in advance.

Joschka

In short, as I did it:

1. Request prepayment penalty compensation from the lending bank, inquire about their conditions for property change if the prepayment penalty is too high.
2. Reserve the land, if necessary, arrange bridge financing and buy it.
3. Sell the house (without a realtor, if you feel confident, with some home staging and a real estate photographer!... I am not allowed to post a link, so just search for "Immobilien Fotografie" on Google, there you will find under my homepage (die mobile-immo....) why this is so important)... this can also take up to 3 months for a good property.
3a. You can already sell and continue living in the house yourself. Have a contractual clause inserted in the notary contract for handover in about a year or so. Pay "rent" compensation to the buyer (this will be the interest rate per month that the buyers have to pay to their bank... they still have to finance and also have double expenses. Also mention this in the house offer!
4. Meanwhile, do everything that a home builder does at the beginning.
5. Notary and bank will then arrange everything, or the sale and all mortgage stuff (cancellation etc.) will proceed on its own.
6. Arrange refinancing or property change conditions with the old bank.
7. Build.

I hope I was able to help you.

1 to 3 will be very stressful and involve many phone calls.

P.s.
@Admins... I really don't want to make advertising, but still want to help the original poster

@ Joschka, guarantees for the move-in date... that will hardly work. Hopefully the house construction will go smoothly then...
The builder also has his own worries: either you sign or not. But you don't have to sign immediately, only after the notary appointment! The selling time can be wonderfully used for planning. Important: arrange the notary appointment immediately! The buyer can then also look forward and calmly terminate his own apartment
We will probably sleep in a caravan on the construction site for a few weeks, as we planned too short-term and the frost period was too long

Thank you for your answers ypg. I had definitely assumed that I would pay the VFE, since I can now refinance with a lower interest rate and would basically be glad to get rid of the old loan. The tip about the photos is a good one. Fortunately, my brother-in-law is a photographer and will be drafted by me for this. Selling without an agent is also my favorite option, since here usually only something is available through agents and as a private seller without agent commission you can position yourself quite well. What is particularly important to me is a nearly smooth transition from the old to the new house, since we cannot just sleep in a caravan with two small children, especially not in winter... and we don’t even own a caravan... There are certainly also providers on the market that offer construction time guarantees and that would certainly be good for an initial orientation.

We are in almost the same situation. We live in a 2-room apartment that I bought 4 years ago. ZB until 2019. Now we want to build and didn’t know how to go about it.

1. Apartment privately listed on the internet and promptly found 2 really highly interested buyers.
2. Tell the buyer that the sale cannot happen immediately.
3. Found a new property to build on.
4. Obtain construction financing and find out about prepayment penalties, although the old bank can only tell you the exact value down to the cent after termination.
5. Schedule both notary appointments at the same time. First carry out the sale then the purchase.

Until our house is finished in August 2014, we continue living in our apartment. So to speak, renting from the new owner of our apartment. The lease agreement must be notarized. That way no one can evict us.

@Joschka: then it's best to make a good monthly plan and set the "handover time" far back... Buyers possibly have a 3-month notice period for the apartment, if they are nice, they can then submit the cancellation later (basically on call by you) But it's best to discuss something like that at eye level