Much of whether a new construction home shows up correctly in a search, in the US or overseas, comes down to something unglamorous: whether the industry agrees on what to call it.
Three Definitions That Have to Be Clear
A proposal now moving through the Real Estate Standards Organization (RESO) would set clearer definitions for the stages a new construction home can be in. Bill Gaul, CEO of Builders Update and chair of RESO’s new construction subcommittee, has spent about a year building consensus around three basic categories. “Is it just dirt, to be built? Is it a quick move-in, nearly ready? Or is it under construction,” he says, describing homes that may be at framing or another mid-build stage months from completion.
Those distinctions sound simple, but Gaul says the terminology had been inconsistent, with unrelated categories sometimes mixed in. Cleaning up the definitions, he argues, is the foundation that lets builders put their inventory into a system accurately, and lets agents and buyers trust what they see.
Where the Proposal Stands
The proposal has moved from Gaul’s subcommittee toward a vote by the wider RESO body. It was held over at a recent meeting for other priorities and is expected to come up next. Gaul says the change was designed to be simple on purpose, and that it has support from the data dictionary’s leadership.
He also frames it as a benefit beyond builders. Appraisers, who have struggled with a shortage of comparable sales for new construction, would gain more usable data. “If we all work together, everybody wins,” Gaul says.
A Common Language for a Global Market
The standards question does not stop at the US border. Gaul serves as an ambassador to GDX, a federated global data exchange built on RESO standards that lets MLSs and data providers in different countries share listings while keeping ownership local. Its members include organizations in the United States, Canada, France, and the United Arab Emirates. In his weekly meetings with international participants, Gaul says, a shared data standard is what makes cross-border communication possible.
“Real estate standards are a language,” he says. “If we all speak the same language, we can communicate much more effectively.” As investors and buyers increasingly look across borders, he argues, consistent definitions are what let inventory in one country be understood in another.
About the Expert: Bill Gaul is CEO of Builders Update and chair of the RESO Data Dictionary New Construction Subcommittee. Based in Austin, Texas, he specializes in new construction data and MLS interoperability.
About Builders Update: Builders Update is one of North America’s leading providers of new construction inventory data, serving builders, MLSs, brokers, and real estate professionals. Through its innovative platform and commitment to data quality, Builders Update advances transparency, interoperability, and collaboration within the new construction sector. For more information, visit www.buildersupdate.com.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
