Transfer of an unrenovated house - experiences, tips?

Dear Forum,

we are planning a renovation of my parents' house and are not sure in which order it is best to proceed.
The current situation is as follows: my family and I (2 adults and 2 children) live with my mother (63) on two separate floors. My brother lives with his family 20 km away and we have a good relationship.
Since my mother is listed on the land register and would like to transfer the house (130 sqm + 90 sqm living space and a plot of 2300 sqm) to us with lifelong residential and usufruct rights for herself, we would also like to pay out my brother accordingly.
Unfortunately, we do not currently know the value of the house and land, i.e. their market value, on which we could then base a payout calculation. Moreover, since my mother will hopefully live in the house for many years, these "costs" should also be taken into account.
We would also like to use the current value of the house as a basis, because with the upcoming renovation the value of the house will certainly increase.

So in which order should we proceed most cleverly?
As far as we know, we have to:
- go to the notary for the transfer and "paying out brother"
- go to the Sparkasse or similar for a loan
- have the house appraised by a building surveyor to know how much we have to pay out
- go to the construction supervision company to get offers and know the loan amount

Of course, we want to avoid double and triple trips as much as possible. In addition, it will certainly also increase costs the more often we go to the notary, etc.

So should we first ask a construction company that is to be commissioned with the renovation and who could also estimate the value of the current house? Or does it have to be done separately by an expert?
With this value we agree with my brother on an amount and then go together to the notary to have everything certified, change the land register, etc.
Then go to the "Sparkasse" to finalize the loan?

Do we have any errors in our thinking or have we not considered something?
Do you have any tips for us?

We are very grateful for any help.

Best regards
Merymery

How well do you get along in the family? If very well and it doesn't depend on a few euros more or less, then estimate a value for yourselves. Done and dusted.

If you want it precise and also want to properly assess the right of residence (depending on your mother’s age, it’s quite possible that her apartment no longer has any value), then go to an appraiser.

Notary fees for the transfer are manageable. Tip: a transfer from mother to you does not incur property transfer tax. To your husband, however, it does. So perhaps first transfer the entire property to you and then half to your husband (then no property transfer tax either).

At the same time, take care of the renovation and a possible financing framework.

Once both are done (you’re not in a hurry), schedule appointments with the notary and the bank.

As far as taxes are concerned, I would only realize the increase in value (through renovation / conversion) after the transfer of ownership. Regardless of the importance of tax aspects, I would consult the tax advisor, who can then refer you to the right experts. The overall situation is not an unusual case for tax advisors, notaries & co.

Notaries also advise regarding transfer, right of residence, and compensation. There is no additional consultation fee. One just has to find a good notary.

Oh yes, one more note. Banks really do not like [Wohnrechte] - they significantly reduce the mortgage lending value of the property.

You just have to find a good notary.

In my experience, tax advisors and notaries know each other quite well, in the sense of "the apple doesn't fall far from the tree," also meaning that a clueless tax advisor doesn't know clever notaries ;-)

Banks really don't like having residential rights - they massively burden the lending value of the property.

However, here only the renovation needs to be financed, and the residential right is offset by the saved purchase price (which therefore does not need to be financed either).