Umansky: How indies can survive, and the ‘real problem’ with the CCP
In a recent interview, The Agency founder and CEO discussed the tough choices faced by independent firms and how Clear Cooperation has “handcuffed” brokers.
Key points:
- Mauricio Umansky said slow home sales have made business difficult for independents, but The Agency’s franchising model has bolstered its growth during the down market.
- The CEO was also nostalgic for the pre-Clear Cooperation era, asserting that much of the private listings controversy could be resolved if the CCP were abolished.
- He also touched on the American Real Estate Association, noting that it’s focused on growth while engaging in advocacy efforts related to affordable housing.
Over the last few years, many independent brokerages have struggled to adapt to a challenging economic environment.
But despite declining home sales, elevated mortgage rates and rising inflation, Beverly Hills-based The Agency has continued to grow globally while retaining its independence and boutique culture.
In a recent interview, The Agency Founder and CEO Mauricio Umansky acknowledged that the independent brokerage landscape isn't easy, but he says the current environment won't last forever.
The CEO also shared his thoughts on some of the industry's most contentious topics and discussed the progress of the American Real Estate Association.
The obstacles for independents today
"Real estate is really suffering right now in terms of the amount of sales and the [direction of the] economy," Umansky told Real Estate News. "In order for independents to compete, [some] have had to consolidate."
But consolidation can also lead to commission compression and other negative outcomes for independents, particularly for smaller brands that are struggling to gain access to inventory, the CEO added.
As bigger firms like Compass continue to grow their market share while also leaning into private listings, small players have to work harder to access that inventory for their clients.
"All of that is just making it much more difficult for brokerages to survive," Umansky said.
Independence within a wider support network
When asked how The Agency continues to stay stable during tough times, Umansky pointed to the brokerage's business model. The Agency allows for independent business operations across offices, Umansky said, while providing those franchisees with the support of the larger company's services, helping them compete with bigger industry players.
"A lot of our model is a franchise model, so owners can still own their brokerage, and yet, we obviously can share listings. We have some enterprise value where we can get things less expensive and make it easier to operate while still in essence being independent."
Umansky said he always strives to grow his company during down markets to maintain a position of strength for when the market recovers. He encouraged other independents to do what they can to find new sources of revenue, gain market share, if possible, and lean on their networks.
Private listings aren't the problem — but CCP is still a barrier
As the industry continues to debate who should control how listings are marketed, Umansky reiterated a point he has made publicly on multiple occasions in recent years: The National Association of Realtors should eliminate its Clear Cooperation Policy. That doesn't mean he objects to a cooperative marketplace, and he noted that he's always upfront with sellers about the benefits of broad listing exposure.
"I'm not sitting there, advocating for private listings," Umansky said.
"There's a gazillion reasons why a seller might want privacy," he added. "But the fact is, our ability to sell those properties has been handcuffed by the Clear Cooperation Policy. That's the real problem."
Umansky suggested that some firms are criticizing private listings because they don't have the market power to compete without access to that inventory.
"The Zillows of the world want the ability to have the inventory, and I get that — that's their business. The independents want the ability to have inventory, and I get that — that's their business. But there is a way to give that ability the way it used to be, and we all used to share — by just taking away the Clear Cooperation Policy," he said.
Pointing to the current litigation over how listings can be marketed and who gets to make the rules — specifically the fights between Compass and CRMLS and between NAR and ThePLS.com, a pocket listings site co-founded by Umansky — the CEO said it will be interesting to see if the legality of the CCP will be tested in court.
New MLS marketing policies signal that change is needed
Umansky believes the wave of new pre-marketing options MLSs have unveiled this year is a response to today's market, even as other MLSs fail to adapt.
"That just shows you how much it is needed," the CEO said. "Because even MLSs are saying, 'Wait a minute, I need this … but [many] are just not willing to change."
Umansky said it also feels like everyone in the industry is just looking to line their own pockets.
"That's what everybody's doing," He said. "Take away your own pockets and start really thinking about the industry and the consumers — buyer and seller."
On the advocacy front: The ARA's push for affordable housing
Umansky co-founded the American Real Estate Association (ARA) in 2024 with Compass agent Jason Haber, and while the association is still small, "Right now, what we're trying to do is grow," Umansky said.
"We're in the middle of hiring partners in all 50 states so that we can start advocating and lobbying in all 50 states. But that's still going to require some time, and building an association, it's going to take a while. But here we are, we're growing it, and every day, we get bigger and more important."
As an advocacy group, ARA is very focused on affordable housing, Umansky said. The association has also used its platform to fight New York City's pied-a-terre tax and the ULA or "mansion" tax in Los Angeles, which he believes has hurt the city by dissuading new development.
"If you don't have development, you don't have affordable housing," Umansky said. "You need to create supply in order to start making housing more affordable for everybody. And if we can't develop property, we can't do that."