The real estate industry is facing a critical skill gap: most agents are trained to sell resale homes, but new construction sales require a fundamentally different approach. According to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee, the differences are significant enough that agents who treat new construction like a resale are working against the format.
In a resale, an agent shows a buyer multiple homes until one fits. New construction, however, presents a unique challenge: a single community may have multiple floor plans at various stages of completion, from finished models to homes not yet built. "You go to a community, and there are twenty homes for sale, maybe three model A's, six model B's, eight model C's," Gaul explains. This variety means that showing options in ascending order, a common resale tactic, is ineffective.
The stronger approach, Gaul argues, is to identify the closest match to the buyer's needs and present it first. This requires extensive preparation before the buyer arrives. Agents should visit every builder in their market to learn price points, construction quality, community demographics, and selling points. Additionally, they must differentiate between what a buyer needs and what they say they want. "Understand what they need, not only what they want, then deliver the product that best matches their needs first," says Gaul. Homes shown after the best fit tend to meet fewer criteria, leading to buyer fatigue rather than progress toward a decision.
Another key difference is the presence of the on-site sales counselor, who possesses deep knowledge of the builder's product. The agent's role is not to compete with that expertise but to guide the buyer to the right community and provide the trust that the buyer does not yet have with the on-site team. Ideally, the agent, buyer, and counselor work together as allies to find the right home, sometimes one that has not been built yet.
Despite these differences, most agent training covers only resale methods. To address this gap, Builders Update has launched a training course specifically for new construction. The course consists of six self-paced modules, each about thirty minutes long. The first module is free; the remaining five cost $149, or $129 for agents affiliated with participating MLS organizations. Completing the course earns agents a certificate designating them as a new home specialist, with a more advanced tier planned for those who have closed a set number of new construction sales.
The platform restricts its detailed listing information to licensed agents, reflecting an agent-centric model. "We consider our information privileged, and we only make it available to licensed real estate agents," Gaul says. As new construction grows as a share of available inventory in many markets, the need for specialized training becomes more pressing. This development has significant implications for the industry: agents who adapt to this new reality will be better positioned to serve buyers and succeed in a changing market, while those who rely solely on resale skills may find themselves at a disadvantage. For business leaders, understanding this shift is crucial for staying competitive in real estate.
