"I Have a Home to Sell" — How to Handle the Most Common Objection in New Home Sales

This one stops more deals than any other objection in our industry.

Not price. Not interest rates. Not square footage or lot premiums or HOA fees.

It's this:

"We love the home, but we have a house to sell first."

And what happens next determines whether you're a salesperson or a consultant. Whether you close the deal in 30 days or watch them walk out and never come back.

Let's break down how to handle this the right way.

First: Stop Treating This as an Objection

Here's the mindset shift that changes everything.

When a buyer says "I have a home to sell," most salespeople hear a roadblock. They hear "not right now." They hear "maybe later."

What you should hear is: "I want to buy this home but I don't know how to make it work. Help me."

That's it. That's the real message.

They're not saying no. They're saying I'm stuck. And your job is to get them unstuck.

The Biggest Mistake: Assuming They Know Their Options

Here's what average salespeople do when they hear this objection:

"Okay, no problem—just reach out when your home is sold and we'll see what we have available!"

Congratulations. You just handed your buyer to a competitor.

Why? Because you assumed they had it figured out. You assumed they knew all their options. You assumed the only path forward was to wait.

Most buyers don't know what they don't know. They've never heard of a bridge loan. They don't realize they might qualify without selling. They haven't done the math on carrying two mortgages temporarily.

They're not finance experts. You need to be.

And if you're not, get there. Partner with lenders who can educate you. Learn the products. Know the options cold.

Because the salesperson who provides clarity wins the deal.

Step One: Understand the Real Situation

Before you offer a single solution, you need to understand what you're actually dealing with.

Ask questions:

"Tell me about your current home—what do you think it's worth, and do you have a mortgage on it?"

"Have you talked to a lender yet about what buying a new home would look like financially?"

"When you say you need to sell first—is that something your lender told you, or is that an assumption you're working with?"

That last question is critical. Most buyers assume they need to sell first without ever confirming it.

They think: "I can't afford two mortgages, so obviously I need to sell."

But they've never actually run the numbers. And when you get them in front of a sharp lender, sometimes the answer is surprising.

Do They Actually Need to Sell?

This is where your partnership with a great lender becomes a competitive advantage.

Here's what a good lender will look at:

Debt-to-Income Ratio (DTI) Lenders care about whether your buyer can handle the new payment. If their income is strong and their debts are manageable, they might qualify for the new mortgage even while carrying the old one—especially if they're putting significant money down.

Equity Position If they have substantial equity in their current home, they may be able to leverage that for a down payment without selling first. A HELOC, a bridge loan, or other creative financing can unlock that equity.

Rental Potential Some lenders will allow buyers to count potential rental income from their current home if they plan to lease it instead of sell it. This can completely change the qualification picture.

The point is this: Don't let your buyer make assumptions. Get them in front of a lender who will run the real numbers.

You'd be shocked how many buyers who "have to sell first" actually don't.

Financing Options for Contingent Buyers

If your buyer does need to access equity from their current home to make the new purchase work, there are several paths forward. Know these cold.

Bridge Loans A bridge loan is short-term financing that "bridges" the gap between buying the new home and selling the old one. The buyer uses the equity in their current home as collateral to fund the down payment on the new home. Once their old home sells, they pay off the bridge loan.

This is especially powerful for QMI homes—quick move-ins—where the timeline is tight. The home is ready now, the buyer loves it, but they're stuck because they haven't sold yet. A bridge loan breaks the logjam.

The downside: Bridge loans have higher interest rates and fees. They're not free money. Make sure your buyer understands the costs and is working with a lender experienced in these products.

Home Equity Line of Credit (HELOC) If your buyer has significant equity and time before they need to close, a HELOC can give them access to funds for a down payment. This works better for to-be-built homes where construction gives them months to sell their existing home.

Builder Buyout or Guaranteed Sale Programs Some builders partner with companies that will make a guaranteed offer on the buyer's existing home. The buyer gets certainty—they know exactly what they'll net—even if the offer is below full market value.

This removes risk and removes the contingency. It's not for everyone, and the numbers have to make sense. But for buyers who are stuck in analysis paralysis, sometimes the certainty is worth more than the last few dollars.

401(k) Loans or Gift Funds These aren't always applicable, but they're worth exploring. Some buyers can borrow against retirement funds temporarily. Others have family willing to help with a gift. A good lender will uncover every option.

When They Truly Need to Sell First: Be a Consultant, Not a Cheerleader

Sometimes the math just doesn't work. They need the proceeds from their current home to make the new purchase happen, and there's no bridge available.

Fine. That's reality.

But this is where most salespeople disappear—and where great ones step up.

Your job now is to help them sell their home faster and smarter so they can get back to you ready to buy.

Here's what that looks like:

Set Realistic Expectations on Pricing

This is uncomfortable, but it's essential.

Most homeowners are emotionally attached to their home's value. They remember what their neighbor sold for in 2021. They've added up every upgrade they've ever made. They've convinced themselves their house is special.

And then they price it $30,000 too high and watch it sit on the market for three months.

Here's what the research tells us:

According to studies from the National Association of Realtors and multiple MLS data analyses, homes priced correctly from the start sell faster and often net more money than homes that start high and reduce later. Overpriced homes become stale. Buyers assume something is wrong. Price reductions signal desperation.

The first two weeks on the market are the most critical. That's when buyer activity is highest. If you miss that window because of ego pricing, you're fighting uphill.

Tell your buyer this directly:

"I know you want to get top dollar for your home, and you should. But let me share something with you—the homes that sell fastest and for the strongest prices are the ones priced right from day one. Overpricing costs you time, and in this market, time is money."

Help Them Find a Great Agent

If you have relationships with listing agents who are sharp, aggressive, and get homes sold—make the introduction.

This isn't about kickbacks or referral fees. It's about helping your buyer get to the finish line. When you connect them with an agent who prices correctly, markets effectively, and creates urgency—you're moving your deal forward.

Be the connector. Be the resource. That's what consultants do.

Create a Timeline They Can Work Backward From

If your buyer is looking at a to-be-built home with a seven-month construction timeline, sit down with them and map it out:

• "If your home closes by month five, you'll have funds available for your final loan approval with time to spare."

• "That means you probably need to be under contract by month four."

• "Which means listing by month two or three at the latest."

When you make it concrete, it stops feeling overwhelming. They can see the path.

The QMI Dilemma

Quick move-in homes present a unique challenge with contingent buyers.

The home is ready now. Or in 30 days. There's no construction timeline to hide behind.

This is where bridge loans and buyout programs become especially valuable. If the buyer can't access one of those tools, you need to have an honest conversation:

"This home is going to be available for the next buyer who can move on it. I don't want you to lose it because of timing. Let's figure out if there's a way to make this work now—and if there isn't, I want to get you into a to-be-built so you have the runway you need."

You're not pressuring them. You're being honest about the reality of inventory.

Why Most Salespeople Fail Here

There's a psychological concept called the curse of knowledge. Once you know something, it's hard to remember what it was like not to know it.

You know about bridge loans and HELOCs and DTI ratios. You know the market. You know what homes are selling for.

Your buyer doesn't.

They're overwhelmed. They're scared of making a mistake. They've been told the market is crazy and interest rates are high and maybe they should just wait.

And when they say "I have a home to sell," they're really saying: "I don't know how to do this. Is it even possible?"

Your job is to show them it's possible. Walk them through every option. Connect them with the right people. Give them a plan.

That's what separates order-takers from deal-makers.

The Bottom Line

When a buyer says "I have a home to sell," don't wave goodbye and hope they come back. Get to work.

1. Find out if they actually need to sell to qualify—don't let them assume.

2. Know every financing option—bridge loans, HELOCs, buyout programs, and more.

3. Be a consultant on their existing home—set realistic pricing expectations and connect them with great agents.

4. Create a timeline—make the path clear and actionable.

5. Match them with the right inventory—QMI if they can move fast, to-be-built if they need time.

   
   

Do this consistently and you'll close deals your competitors never even knew were possible.

Because you didn't just wait for the buyer to figure it out.

You figured it out with them.

Now go sell something.