New construction remains underrepresented in MLS data, and the standards governing it are only now beginning to catch up. The mismatch between how MLS systems were built and how new construction actually operates has created challenges for builders, agents, and buyers for years, according to Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. Gaul notes that MLS data infrastructure was designed around resale transactions, not the way builders manage and sell inventory. “It’s been a round peg trying to fit into a square hole in the MLS,” he says.
The consequences are tangible. Agents frequently show buyers a listing found in the MLS, only to arrive at a development and discover multiple nearly identical models. The listing represented a single unit, but the reality is a sales operation with its own pricing, customization options, and construction timeline. Agents not specialized in new construction often find this environment harder to navigate, leaving buyers confused.
Gaul spent roughly a year working through RESO’s subcommittee to address basic terminology issues: terms like “under construction,” “to be built,” and “quick move-in” were used inconsistently across systems. “It took me about a year of developing consensus among the group,” Gaul says. “We finally got it to where it’s usable for builders.”
One less-discussed reason for underrepresentation 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, which can complicate pricing across a development with similar units. Gaul compares it to a car dealership: if buyers could see exactly what the last customer paid, every subsequent negotiation would start from that number. “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, not because builders are unaware of the MLS, but because full participation can work against their pricing strategy. Agents searching for new construction find an incomplete picture, and buyers miss available inventory.
The data-standards problem is compounded by limited agent training specific to new construction. Licensing programs teach agents how to handle resale transactions, but the skills required for new construction—understanding timelines, interpreting floor plans, navigating builder contracts—are not typically covered. “They don’t teach agents how to sell new construction,” Gaul says.
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 platform takes inventory data directly from builders, 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. Because construction status and pricing can change within weeks, data passing through multiple intermediaries can be outdated. “We want to become the pure source for new construction data,” Gaul says.
The platform currently serves approximately 858,000 agents nationwide and is expanding internationally, with the site available in nine languages and nine currencies. Gaul’s ambassadorship with the GDX global MLS network aims to connect US new construction inventory with buyers abroad. Builders Update operates alongside MLS systems and third-party portals rather than replacing them, and its effectiveness depends on builder participation.
The RESO data dictionary changes Gaul has pushed 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 inventory, buyers searching through MLS-based tools will continue to see an incomplete picture until those standards catch up.
