New construction has long been underrepresented in MLS data due to a fundamental mismatch between how multiple listing services were designed and how builders actually sell homes, according to industry experts. Bill Gaul, CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee, explains that MLS infrastructure was built for resale transactions and was never designed to handle builder-specific sales processes. "It's been a round peg trying to fit into a square hole in the MLS," Gaul says.
The consequences are tangible for agents and buyers. Agents often show a listing found in the MLS, only to discover a development with multiple nearly identical models, each with its own pricing strategy and construction timeline. This confusion stems from basic terminology inconsistencies: terms like "under construction," "to be built," and "quick move-in" have been used differently across systems. Gaul spent a year working through the RESO subcommittee to standardize these terms, achieving a consensus that he says is now "usable for builders."
Builders also have strategic reasons to list selectively. When a home is listed in the MLS, the sale price is typically disclosed upon closing, which can complicate pricing across a development with similar units. Gaul compares this to a car dealership: if buyers knew the exact price paid for the same vehicle, negotiations would start from that number. Builders prefer to keep each transaction confidential to maintain pricing leverage. "Builders will only put their model home in, maybe a couple of other models," Gaul says. "They're not going to put everything in." As a result, MLS systems underrepresent new construction inventory, and buyers relying on MLS-based searches miss available homes.
The data standards problem is compounded by a lack of agent training specific to new construction. Licensing programs focus on resale transactions, not construction timelines, floor plans, or builder contracts. "They don't teach agents how to sell new construction," Gaul notes. This gap affects how agents handle buyer visits; Gaul recommends agents visit every builder in their market before working with a buyer to identify the best match early.
Builders Update addresses these issues by providing direct-source data from builders, bypassing third-party aggregators. The platform time-stamps every listing and performs quality-control checks, catching errors like a home listed at $1,500 instead of $1.5 million. Because construction status and pricing change quickly, data passing through multiple intermediaries can be outdated by the time it reaches consumers. "We want to become the pure source for new construction data," Gaul says.
The platform currently serves approximately 858,000 agents in the U.S. and is expanding internationally, available in nine languages and nine currencies. Through a recent ambassadorship with the GDX global MLS network, Gaul aims to connect U.S. new construction inventory with buyers in Latin America, Europe, and beyond. Builders Update operates alongside existing MLS systems rather than replacing them, and its effectiveness depends on builder participation.
The RESO data dictionary changes Gaul championed have moved from the subcommittee to a broader vote, where organizations less focused on new construction may resist change. As builders represent a growing share of available inventory, buyers searching through MLS-based tools will continue to see an incomplete picture until standards fully catch up.
