How The Agency Is Changing the Real Estate Brokerage Game

When Mauricio Umansky started The Agency real estate brokerage back in 2011, he didn’t really have much to prove. 

He was already one of the top real estate agents in the country, focusing on ultra-expensive luxury properties in California. He was a dad to three girls and married to Kyle Richards, a “Real Housewife of Beverly Hills.” Life was good. 

But Umansky looked at the status quo of real estate sales and didn’t like what he saw. He knew there was a gap in the market. “Nobody was taking advantage of the technological advances that were happening in real estate,” he said. So he left a secure gig at ultra-exclusive L.A. brokerage Hilton & Hybrid to start The Agency. 

The move paid off. Today, with a mix of franchised and corporately owned locations, The Agency has grown to 42 locations with more than 600 agents throughout the United States, Canada, Mexico and the Caribbean.   

1851 Franchise caught up with Umansky, who serves as The Agency’s CEO, to talk about why he started his brand, what it takes to scale a luxury brand and what the future holds for high-end markets.

1851 Franchise: What was your motivation to start The Agency in 2011? 

Mauricio Umansky: Oh, my gosh. The motivation was that I just felt there was an opportunity for something better. I felt that all of the brokerage firms back then were just kind of archaic. There was nobody really trying to innovate. Nobody was taking advantage of the technological advances that were happening. There were just a whole bunch of individuals working under a brokerage but nobody really collaborating. It was a complete lack of culture. It became a very cutthroat business. That’s where The Agency’s rule number one comes from — No Assholes.

1851: Did starting a real estate business in the middle of a housing crisis cause you any sleepless nights? 

Umansky: My grandfather always taught me that anytime there's a recession,  be a contrarian. Luckily for us, we kind of timed it right … even though we didn't plan on timing it right. We knew we were opening at the end of the recession; we just didn't know if it was going to be another year or two years or three years. Quite honestly, just as we opened, it felt like the recession ended. And so from my perspective, it was a little bit of luck, which we all needed.

1851: What was at stake for you personally and professionally?

Umansky: There were tremendous risks and there was a lot at stake. I was leaving a very stable, amazing company, Hilton & Hyland, one of the leaders in the industry. I was leaving a very stable situation where I became the number seven agent in the country and the number one in California. I had a very steady income and a very steady situation. So giving that up to start something new was tremendously risky.

1851: Where did you find the balls to do it?

Umansky: Well, my wife and I felt that we were onto something. Sometimes in life, you have to take a risk. I'm an entrepreneur by heart, and I'm born with those balls. I'm a competitive guy, and I have no problem taking risks.

1851: Let’s talk about the luxury market over the past year or so. I imagine it's gone as crazy as everything else. Is that your perception?

Umansky: Without question. There's a lot of wealth in the country. There's a lot of cash out there, and wealthy people have been buying second homes, third homes. There's been a tremendous amount of buyer need in the areas where people now want vacation homes because people no longer need to live full time in the city, and now they’re looking in suburban and rural areas. You're seeing markets like Montana, Colorado, Aspen, Palm Springs and Park City just explode with high-end luxury sales. 

1851: As The Agency pursues scaling through franchising, how do you maintain your culture and brand values?

Umansky: The most important thing is picking people. That's the key. Obviously, you're going to have brand guidelines and brand strategy. But at the end of the key is to pick the right partners and the right people that understand your culture, understand your brand and understand what a luxury boutique is all about. It's really about being patient and picking the right people.

1851: How does being patient affect your ability to grow your brand?

Umansky: To outsiders, it seems like we’ve been growing extremely fast. From our perspective, we actually could have grown a lot faster if we wanted. We probably could have had 60-70 offices by now. But we're very picky, so it's all about picking people. 

1851: There's talk of agents becoming obsolete, thanks to the Redfins of the world. What’s your take on the iBuyer phenomenon?

Umansky: Impossible! It will definitely not happen. Once you get into a city or a neighborhood, you need to understand it. Where do I want to live in Miami? Where do I want to live in Los Angeles? In Palm Springs, what's the difference between the Hideaway Golf Club, The Vintage Club, the Tradition Country Club? The only way to get that information and understand that is through your real estate broker.