For years, new construction has been an awkward fit within multiple listing services (MLS), according to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. “It’s been a round peg trying to fit into a square hole in the MLS,” Gaul says. The consequences are concrete: agents often show buyers a listing found in the MLS, only to discover not one home but nearly identical models in a development with its own pricing strategy and construction timeline. This confusion stems from MLS data infrastructure originally designed for resale transactions, not for how builders manage inventory.
Basic terminology problems have persisted, with terms like “under construction,” “to be built,” and “quick move-in” used inconsistently across systems—or not recognized at all. Gaul spent roughly a year developing consensus among the RESO subcommittee to standardize these terms. “It took me about a year of developing consensus among the group,” Gaul says. “We finally got it to where it’s usable for builders.”
Why is new construction underrepresented in MLS data? Builders often have good business reasons to list selectively. When a builder lists a home in the MLS, they are typically required to report the sale price once it closes, and that disclosure can complicate pricing across a development with similar units. Gaul compares it to a car dealership: if buyers could see the exact price paid for the same vehicle, every subsequent negotiation starts from that number. “Builders will only put their model home in, maybe a couple of other models,” Gaul says. “They’re not going to put everything in.” This selective listing results in an incomplete picture for agents and buyers who rely on MLS-based searches.
Compounding the data-standards problem is a training gap. Licensing programs teach agents how to handle resale transactions, not new construction. Skills such as understanding construction timelines, interpreting floor plans, and navigating builder contracts are typically not part of standard training. “They don’t teach agents how to sell new construction,” Gaul says. “They teach how to resell, but not new construction.” The effects show up in how agents handle buyer visits, often showing developments in a less effective order. Gaul recommends agents visit every builder in their market before working with a single buyer to match buyers efficiently.
Builders Update, Gaul’s company, has developed a training program for agents selling new construction, structured as a self-paced course with six modules. The platform takes inventory data directly from builders, time-stamps every listing, and performs quality-control checks before publishing. Gaul describes catching errors including listings priced at $1,500 instead of $1.5 million and GPS coordinates placing properties far offshore. “We want to become the pure source for new construction data,” he says. The platform currently serves approximately 858,000 agents nationwide and is expanding internationally, with the site now available in nine languages and nine currencies. Gaul’s recent ambassadorship with the GDX global MLS network is intended to connect US new construction inventory with buyers abroad.
The RESO data dictionary changes have moved from the subcommittee to a broader vote, where organizations less focused on new construction may be cautious about change. As builders represent a growing share of available inventory, buyers searching through MLS-based tools will continue to see an incomplete picture until those standards catch up. For more information, visit Builders Update and RESO.
