For years, new construction has been an awkward fit within the multiple listing service (MLS) system, according to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. The MLS data infrastructure was designed primarily for resale transactions, creating a structural mismatch that affects builders, agents, and buyers. “It's been a round peg trying to fit into a square hole in the MLS,” Gaul said.
The consequences are tangible. Agents often show buyers listings found in the MLS only to arrive at a development and find multiple nearly identical models, each with its own pricing strategy and construction timeline. This environment can confuse buyers and agents alike. Gaul spent roughly 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. “It took me about a year of developing consensus among the group,” Gaul said. “We finally got it to where it's usable for builders.”
One less-discussed reason new construction is underrepresented in MLS data is that 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 upon closing, which can complicate pricing across a development with multiple similar units. Gaul compares it to a car dealership: if buyers could see the last sale price, 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.” As a result, MLS systems tend to underrepresent new construction inventory, leaving buyers who rely on MLS-based searches with an incomplete picture.
The data-standards problem is compounded by limited agent training specific to new construction. Licensing programs typically focus on resale transactions, not the skills needed for new construction, such as understanding construction timelines, interpreting floor plans, and navigating builder contracts. “They don't teach agents how to sell new construction,” Gaul said. “They teach how to resell, but not new construction.” He recommends agents visit every builder in their market before working with buyers to learn prices, construction quality, and selling points.
Gaul's company, Builders Update, has developed a training program for agents selling new construction, structured as a self-paced course with six modules. The first module is available at no cost; agents affiliated with participating MLS organizations can access the remaining five for $129. The platform takes inventory data directly from builders rather than through third-party aggregators, time-stamps every listing, and performs quality-control checks. Gaul describes catching errors such as 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 said. The platform serves approximately 858,000 agents nationwide 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 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 available inventory, buyers searching through MLS-based tools will continue to see an incomplete picture until those standards catch up.
