For years, new construction homes have been underrepresented in multiple listing service data, creating challenges for builders, agents, and buyers. The mismatch stems from MLS systems originally designed for resale transactions, leaving new construction as “a round peg trying to fit into a square hole,” according to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. The consequences are concrete: agents often show buyers an MLS listing, only to arrive at a development and find multiple nearly identical models, each with its own pricing and timeline. Gaul spent a year working through RESO’s subcommittee to standardize terminology like “under construction,” “to be built,” and “quick move-in,” which were used inconsistently across systems. “We finally got it to where it’s usable for builders,” he said.
One less-discussed reason for underrepresentation is that builders often have business reasons to list selectively. When a home is listed in the MLS, the sale price is typically disclosed upon closing, which can complicate pricing across a development. Gaul compares it to a car dealership: if buyers knew the last price paid, every negotiation would start from that number. “Builders will only put their model home in, maybe a couple of other models,” Gaul said. “They’re not going to put everything in.” This results in an incomplete picture for agents and buyers who rely on MLS-based searches.
The data-standards problem is compounded by limited agent training specific to new construction. Licensing programs teach resale transactions, but skills like understanding construction timelines, interpreting floor plans, and navigating builder contracts are not typically covered. “They don’t teach agents how to sell new construction,” Gaul said. “They teach how to resell, but not new construction.” This leads to missteps such as showing buyers developments in a less effective order, causing fatigue and confusion. Gaul recommends agents visit every builder in their market first to identify the best match early.
Builders Update addresses these gaps by taking inventory data directly from builders, time-stamping listings, and performing quality-control checks. Gaul described catching errors like a $1,500 listing instead of $1.5 million and GPS coordinates placing properties far offshore. The platform currently serves approximately 858,000 agents nationwide and is expanding internationally, available in nine languages and nine currencies. Gaul’s ambassadorship with the GDX global MLS network aims to connect US new construction inventory with buyers in Latin America, Europe, and beyond.
The RESO data dictionary changes have moved from subcommittee to a broader vote, where organizations less focused on new construction may be cautious. As builders represent a growing share of inventory in many markets, buyers searching through MLS-based tools will continue to see an incomplete picture until those standards catch up.
