Strategy for selling a house - what is the best way to proceed?

"... what if the buyer possibly cannot pay? ... wait until the financing is SECURED?!"

Well, usually as a seller you don’t just want a contract (to hang on the wall) but to QUICKLY have the agreed purchase price in your account!

What do you do if the buyer comes back to you sheepishly after 6 weeks saying he’s missing 50k€ ... that he found a 450 Euro side job – whether he can pay off the remaining 50k€ over the next 10 years?

The deadline for payment of the purchase price is contractually defined. Where the money comes from is not my problem.

If the buyer breaches the contract, he gets a deadline, and afterwards the transaction will be reversed at his expense, possibly including a contractual penalty.

As a seller, I can and will hardly get involved in his finances, especially not in his financing process. I would also think it’s ridiculous if any seller asked where and how I get funds; that’s my business and none of their concern.

Having the loan agreement ready at the notary is a recommendation to the buyer’s side. If you have planned tightly, I can also recommend that. Otherwise, as a buyer or borrower, you have free choice of potential financing partners, so no need to stress.

The date for the purchase price payment is contractually defined. Where the money comes from is not my problem. If the buyer breaches the contract, they get a deadline, and afterwards the contract will be rescinded at their expense, possibly including a contractual penalty. I can hardly and do not want to get involved in their finances as a seller, especially not in their financing process. I would also show any seller the bird; where and how I procure funds is my business and none of their concern. Having the loan agreement before the notary is a recommendation to the buyer's side. If things are tight, I can also recommend that. Otherwise, the buyer or borrower has free choice of potential financing partners, so there is no need to stress about it.

You are basically right about everything. I just want to point out that "at their expense" means you have to advance the full amount and later try to recover your money in civil proceedings. That requires good legal protection or money, plus a lot of nerves and patience. For that reason, I also sold without emotion to those who made a solvent impression. Unfortunately, the small family was left out.

The date for the purchase price payment is contractually defined. Where the money comes from is not my problem.

unless the money doesn't come ... (and you urgently need it)

If the buyer breaches the contract, they get a deadline, and afterwards, the contract will be reversed at their expense, possibly including a contractual penalty.

is there much to gain from someone who hoped for a 98% financing? (he would have only gotten the loan if the bank had received a land charge for it)

So, that's it.. Signatures made, house sold.

what good is the notary appointment if the buyer might not be able to pay?

I asked the buyers if the appraisal would change anything about their financing and they said no.

After the notarization, the buyers stayed for the mortgage deed..

So I assume that everything is definitely settled there!

You are basically right about everything. I just want to point out that "at your own expense" means you have to front all the costs yourself in order to get your money back later in civil proceedings. For that, you need good legal insurance or money, plus a lot of nerves and patience. That's why I also very unemotionally sold to those who appeared solvent. Unfortunately, the small family fell by the wayside.

This can all be mapped out in the purchase agreement. I don't see a problem with that. The best foundation for this is laid by having the buyer appoint the notary. There's always a bit of risk. Of course, you want solvent buyers and no cancellations. But if someone approached me, as a buyer I would first have to do this and that before the purchase...

The bank's appraisal only serves to ensure that no one is cheating the bank (or that the buyer is not being terribly ripped off). It’s quite logical, you go to the bank and say there is a 200 sqm villa, everything is perfect, and I would like €500,000 from you for it. Up to this point, the bank calculates based on unverified data. So if the lender provides the money for the presented villa, everything is secure as long as the assumptions are correct, but if the bank appraiser informs the bank, wait stop, here stands a 90 sqm dilapidated shack, if that goes wrong you’ll easily be left with €300,000 of your €500,000. Then the bank would also back out. Or if the appraiser sees a defect (at risk of collapse, dry rot, etc.) that the buyer, being naive, overlooked, the bank also says "sorry."