For years, multiple listing services have struggled to accurately represent new construction homes, creating confusion for agents and buyers. Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee, explains that MLS data infrastructure was designed around resale transactions, not the unique dynamics of builder sales. This structural mismatch leads to practical problems: agents find a listing in the MLS, only to discover a development with multiple similar models, each with its own pricing and customization options.
Gaul spent a year working through RESO’s subcommittee process to standardize terminology such as “under construction,” “to be built,” and “quick move-in,” which were used inconsistently across systems. The updated standards aim to make new construction data more usable for builders and agents alike.
One key reason new construction is underrepresented in MLS data is that builders have business incentives to list selectively. When a builder lists a home in the MLS, they are typically required to report the sale price, which can complicate pricing across a development with similar units. Gaul compares this to a car dealership: if buyers knew the exact price paid by the previous customer, negotiations would start from that number. Builders manage pricing confidentially so each buyer starts from the asking price. “Builders will only put their model home in, maybe a couple of other models,” Gaul says. “They’re not going to put everything in.”
The result is that MLS systems underrepresent new construction inventory, leaving agents with an incomplete picture. Buyers who rely on MLS-based searches miss available inventory, and builders who participate partially have listings that don’t fully reflect what they’re selling because data standards weren’t built to handle construction stages or phased releases.
Compounding the data problem is a training gap. Licensing programs teach agents how to handle resale transactions but not the skills needed for new construction: understanding timelines, interpreting floor plans, navigating builder contracts, and sequencing visits. Gaul describes a common misstep: showing buyers developments in a less effective order, starting with weaker options. He recommends agents visit every builder in their market before working with a buyer to learn prices, construction quality, and selling points.
Gaul’s company, Builders Update, offers a training program for agents specializing in 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. Because construction status and pricing can change rapidly, data that passes through multiple intermediaries can become outdated. “We want to become the pure source for new construction data,” Gaul says.
The platform currently serves approximately 858,000 agents and is expanding internationally, available in nine languages and nine currencies. Gaul’s recent ambassadorship with the GDX global MLS network aims to connect US new construction inventory with buyers abroad. The RESO data dictionary changes have moved to a broader vote, where organizations less focused on new construction may be cautious. As builders represent a growing share of inventory, buyers searching through MLS-based tools will continue to see an incomplete picture until those standards catch up.
