The disconnect between how multiple listing services (MLS) were designed and how new construction homes are sold has created persistent 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 systems were built for resale transactions, not for the dynamic inventory, pricing strategies, and customization options that define new construction sales. “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 clients a listing found in the MLS, only to arrive at a development and find multiple similar models with different pricing and timelines. The listing represented a single unit, but the reality is a sales operation with its own pricing strategy and construction phases. Buyers end up confused, and agents who are not specialized in new construction struggle to navigate the process. Gaul spent a year working through RESO’s subcommittee to standardize terminology like “under construction,” “to be built,” and “quick move-in,” which were being used inconsistently across systems. “We finally got it to where it’s usable for builders,” he said.
Builders often list selectively in the MLS because full participation can undermine their pricing strategies. When a builder lists a home, they are typically required to report the sale price, which can complicate pricing across a development with 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 underrepresent new construction inventory, and buyers who rely on MLS-based searches miss available homes.
The data standards problem is compounded by limited agent training specific to new construction. Licensing programs focus on resale transactions, not on skills like understanding construction timelines, interpreting floor plans, or navigating builder contracts. “They don’t teach agents how to sell new construction,” Gaul said. He recommends agents visit every builder in their market before working with a buyer, learning prices, construction quality, and community demographics to match buyers efficiently.
Builders Update, Gaul’s company, aims to bridge the gap by taking inventory data directly from builders, time-stamping each listing, and performing quality-control checks. 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 is intended to extend that reach, connecting US new construction inventory with buyers in Latin America and Europe. “We want to become the pure source for new construction data,” Gaul said.
The RESO data dictionary changes Gaul pushed 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.
