For years, new construction listings have been an awkward fit within multiple listing services (MLS), creating challenges for builders, agents, and buyers. According to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee, MLS data infrastructure was originally designed for resale transactions and does not reflect how builders manage inventory. “It’s been a round peg trying to fit into a square hole in the MLS,” Gaul said.
The consequences are practical. Agents often show buyers a listing from the MLS only to arrive at a development with multiple similar models, each with its own pricing and customization options. Buyers can become confused, and agents unfamiliar with new construction face a steeper learning curve. To address basic terminology issues—such as inconsistent use of “under construction,” “to be built,” and “quick move-in”—Gaul spent about a year developing consensus within the RESO subcommittee. “We finally got it to where it’s usable for builders,” he said.
One reason new construction is underrepresented in MLS data is that builders often list selectively. When a builder lists a home, they are typically required to report the sale price, which can complicate pricing across similar units. Gaul compared it to a car dealership: if buyers could see what the last customer 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.” As a result, MLS systems show an incomplete picture of available inventory.
Beyond data standards, there is a training gap. Standard licensing programs teach agents how to handle resale transactions, not new construction. “They don’t teach agents how to sell new construction,” Gaul said. “They teach how to resell, but not new construction.” This can lead to missteps like showing developments in the wrong order, fatiguing buyers. Gaul recommends agents visit every builder in their market before working with a single buyer to learn prices, quality, and community demographics.
Builders Update addresses both the data and training gaps. The platform takes inventory data directly from builders, timestamps every listing, and performs quality-control checks to catch errors like incorrect pricing or misplaced GPS coordinates. Because construction status can change quickly, direct-source data reduces the lag seen with third-party aggregators. “We want to become the pure source for new construction data,” Gaul said.
The platform also offers a training program for agents, structured as a self-paced course with six modules. The first module is free; agents affiliated with participating MLS organizations can access the remaining five for $129. Builders Update currently serves approximately 858,000 agents nationwide and is expanding internationally, now 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 Gaul pushed have moved from the subcommittee 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.
