For decades, one of the thorniest issues between MLSs and homebuilders was compensation. Builders often resisted participation because they didn’t want to publish offers of compensation to buyer’s agents. That single policy barrier created a decades-long divide, keeping thousands of new construction homes off the MLS and out of consumers’ search results.
But today, that barrier is gone.
With the removal of mandatory compensation fields from MLS participation, the path is finally clear for a new era of collaboration between MLSs and homebuilders. The timing couldn’t be better.
A new research report from 1000WATT, Builders and Realtors: Working on a Dysfunctional Relationship (September 2025), surveyed more than 600 real estate agents nationwide to explore the friction—and opportunity—between builders and Realtors. The findings paint a clear picture: most agents want to work with builders, consumers are open to buying new construction, and the biggest barriers are simply communication, transparency, and accessibility.
That last piece, “accessibility,” is exactly what MLSs were built to solve.
Unifying the Marketplace for Today’s Buyers
When new construction homes aren’t listed in the MLS, they disappear from the consumer experience. Homebuyers searching through portals or broker IDX sites rarely see new homes alongside resales. Agents must toggle between separate systems, builder websites, or third-party feeds just to find complete market data. The result is a fragmented experience that hurts everyone, especially consumers.
By opening the MLS to builders, the industry can deliver a single, unified marketplace where buyers can easily compare new and existing homes side by side. Agents get a fuller picture of local inventory. Builders gain access to a trusted, high-exposure marketing channel. MLSs expand their data footprint and long-term relevance.
Why Builders Win by Joining the MLS
MLS participation isn’t just about exposure, it’s about intelligence and efficiency. Builders who list within the MLS ecosystem gain powerful data advantages that improve both operations and sales performance:
- Comparable Market Data (Comps): Access to accurate resale and new-home comparables helps builders price inventory competitively and adjust incentives with confidence.
- CMAs and Market Analytics: MLS tools and broker dashboards allow builders to understand neighborhood absorption rates, pricing trends, and buyer demand in real time.
- Days on Market Tracking: Transparent performance metrics give builders insight into how their homes are performing versus resale inventory which is vital for managing construction timelines and release strategies.
- Showing and Scheduling Systems: Integration with MLS showing platforms streamlines access for buyer agents while protecting builder site operations and security.
- Automated Syndication: Listing once in the MLS ensures distribution to broker IDX sites, portals, and marketing platforms without the need for manual duplication or third-party vendors. Some builders even pay to display listings on Zillow and other websites.
- Lead Conversion and Data Integrity: MLS data is standardized and verified, meaning leads from participating brokers are higher quality and easier to track.
- Professional Collaboration: Builders who participate build stronger, more respectful relationships with local agents, who, as the 1000WATT research shows, are eager to help sell their homes when communication and clarity exist.
In short: MLS participation delivers both marketing reach and business intelligence that independent builder websites simply can’t replicate.
A Moment of Alignment
1000WATT’s research found that many agents already view working with builders positively, citing smoother processes, easier transactions, and happier clients. They want builders to “visit our offices,” “share materials we can use with clients,” and “quit making it so hard to work with you.” These are all needs MLSs can meet through standardized data, marketing integration, and consistent communication channels.
At a time when inventory remains tight, the opportunity for MLSs to integrate new-home data is enormous. Doing so strengthens relationships with brokers, creates new growth paths for builders, and most importantly, serves consumers with the full picture of available housing options.
The Old Objections Are Gone. The Time Is Now
With compensation offers now optional, the historic barrier between MLSs and builders has been removed. What remains is pure opportunity: to grow participation, expand consumer choice, and create a richer, more transparent marketplace for all.
MLSs were designed to connect professionals and elevate cooperation. Extending that mission to homebuilders is the logical next step.
It’s time to build bridges with builders and grow the marketplace together.
