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Most people dream of disrupting industries. Mauricio Umansky and The Agency have successfully done it.

Richard Branson changed the entire airline industry with Virgin Airlines. He did what every other airline did, fly people from point A to point B. But he changed the experience for the consumer and the culture of the company. He changed the lighting, the mood, the safety video, basically everything he could do within the airline experience. This increased customer satisfaction and employee happiness.

The Wall Street Journal named Mauricio Umansky the No. 1 Realtor in California and No. 7 in the United States when he founded The Agency. For the past two years, he has claimed the No. 3 spot in the U.S.

The Agency’s brand is recognized everywhere, from rural America to the middle of China, not only because of its presence in the media, on the internet, and on TV shows like The Real Housewives of Beverly Hills and Million Dollar Listing Los Angeles, but also because of the success of The Agency’s partnerships, marketing, and events. With only three offices, in Southern California, the firm created a top brand. How did it do it?

The opportunity

A little less than a decade ago, real estate firms hit a point where they became transaction focused–their main goal became the bottom line. Instead of providing top-tier service to the consumer, real estate brokers became sales volume focused.

On top of that, the barrier for entry became so low that all an aspiring agent had to do was take a test. It was as easy as getting a driver’s license. This encouraged a lot of people who weren’t necessarily service oriented to come into the industry. The buyer experience became commoditized.

Management at every single real estate firm started thinking like business people. They would rent a place, add up the expenses and desk fees, and then figure out how much it cost each month to operate. The philosophy changed from scouting out talent to figuring out how many agents would fit into the office. From there, the managers would think, if I hire x amount of agents, I would only need to earn y per agent to break even. They would then charge a fee for the agents (whether trained or not) to make money, but ultimately both the consumer and the agents suffered.

Do things differently

The same way Richard Branson set out to disrupt the airline industry, Mauricio and his partners had goals to disrupt the real estate industry. Mauricio knew he wanted to change how consumers purchase a home.

Here are eight things The Agency did to redefine the real estate industry:

1. Increase the barrier of entry

The Agency isn’t about volume, nor is it about numbers. If you make it into The Agency and are able to wear its hat or pins or “carry The Agency flag,” it means you are someone the firm has chosen to invest in. You don’t have to be the best, but you have to be talented, knowledgeable, and great at what you do.

2. Offer services

Some real estate firms offer 90-10 splits. A few even offer 95, some even as high as 97, and there is speculation of a few groups offering 100 percent payouts. The Agency has a policy of capping its offerings at 80. By paying out anything more than 80, The Agency would not be able to have the services that make the agent better. By offering a lower split, The Agency is able to attract Realtors who understand the team mentality, and that they need tools such as research and marketing collateral and systems to do their jobs better–rather than people who are trying to maximize the deals they have.

3. Use exceptional marketing

The Agency looks for Realtors who are great at sales and account management. It doesn’t need them to be copywriters, graphic designers, or event marketers. By owning an in-house full-spectrum creative agency called The Agency Creative, the firm allows each of its team members to focus on one core duty: to be an adviser who looks out for the client’s best interests.

4. Be an adviser, not an agent

The real estate industry generally has a reputation for being very commission focused. Oftentimes, agents are not perceived to have the consumer’s best interests at heart. At The Agency, the advisers are in it for the long run. They know the market–and if a property is a great deal or bad buy. Plus, they have the research to back their claims. This inside knowledge helps The Agency’s advisers handpick the properties most suitable for their clientele.

5. Define the culture

The Agency stays away from hiring anyone who’s a jerk. When you first start, you have to readDelivering Happiness, Tony Hsieh’s story of how he built Zappos. Once you start working, you can make mistakes. You can be stupid. You can be smart. But you can’t be a jerk. If you don’t make mistakes, you don’t move forward and grow. Mauricio understands that people can’t work all the time, so the firm makes a point of having fun. Otherwise, why spend so much time working? The Agency’s philosophy is to keep everything simple, from its systems to its self-made CRMs to its message.

6. Be transparent

Mauricio loves competition, and he wants to make the industry better. He feels that if other people elevate, he will too. He knows people copy him, and he thinks that’s OK. Mauricio is excited to have been able to make such an impact on the real estate industry–and plans to continue to have the industry progress.

7. Run your company like a tech company

Tech companies work in open floor environments and are known for splitting equity with their key partners. The Agency runs the same way. Mauricio’s office is always open, his best advisers staff the biggest offices, and most advisers work on an open floor plan. When an office finds a talented individual who has made a name for him- or herself, it offers up equity into the parent company. This gives partners mutual interest in making the overall company succeed.

8. Partner with successful people

The Agency is growing, with goals to open another six offices this year and 12 more across the country by the end of 2017. The firm plans to do this by partnering with real estate agents and brokers who have cultivated success in their home market, whether it be Austin or Denver. If you have had success with your real estate career, then The Agency wants to hear from you.

By Leah Kouba

1. What do you love/miss most about playing in the NBA? I miss the competition the most.

2. Which NBA player, former or current do you admire the most? There are a lot of players that I admire.  I played with and against some of the greatest players from 1999-2010 including Charles Barkley, Allen Iverson and Mike Bibby to name a few.

3. What is your favorite restaurant in Los Angeles? I love Katana and Boa.

4. Most families/friends hang out around the kitchen.  What dish would Kenny Thomas make to keep them there? I would get on the grill for them.

5. What is your dream vacation destination? I’m retired now so I plan on doing a lot of traveling. I was a military kid and lived in Germany for a while.  I also played on the USA basketball team when I was in college and went to Italy to play. I’m just getting started with traveling so I’ll let you know what my dream vacation destination is after I visit a couple of spots!

6. What would your dream home consist of? My dream home is going to be crazy, I don’t even know how to explain it.

7. Any future projects we should know about? I started Kenny Thomas Enterprises which engages six primary business segments: Healthy Water, Fitness & Lifestyle Apparel, Basketball Education, Community Outreach, Film & Television Production and Real Estate.  Future endeavors for the Sacramento market include a charity golf tournament to help benefit disadvantaged youth and local charities.  The television and film production entity of KTE is currently in the early production stages of their first film venture with details of a feature film to be announced this summer.  KTE has successfully launched Infinity02 – Super Oxygenated Water (www.Infinity02.com) in New Mexico Supermarkets and is expanding in the Sacramento and NorCal region.

By Leah Kouba

1.What is your favorite thing to do when you’re not playing basketball? My favorite thing is playing golf.

2. Of all the cities you have been to, which is your favorite? Rome is my favorite city that I’ve been to so far. That may change this summer as I will be doing some traveling.

3. Most families/friends hang out around the kitchen.  What dish would Ray Allen make to keep them there? I would make popcorn to keep my family and friends gathered.

4. What is your dream vacation destination? My dream vacation is going to Maui.

5. What would your dream home consist of? My dream home has a TV in every room and a big, side couch that I can sleep on. Definitely a waterfront property.

6. Any upcoming projects we should know about? I just opened a restaurant with my wife called “Grown”.

(“Grown” is one of the first ever organic fast food restaurants. Read more about it here: http://www.businessinsider.com/the-first-organic-fast-food-chain-on-the-east-coast-2016-2)

7. What do you love about playing in the NBA? I love the travel in the NBA. Teams are now traveling across the world because the game is global.

8. Who, either former or current NBA player, do you look up to?

Michael Jordan was and still is my model NBA player.  On the court he was the best and off the court he was always a gentleman.

Watch Kofi tour his gorgeous Laguna Beach $20M listing to Hollywood Today Live

https://youtu.be/GqKuxljdrPM

Watch Kofi tour his gorgeous Laguna Beach $20M listing to Hollywood Today Live

If you really want to impress home buyers, you should enlist the power of visual storytelling. But what are the secrets to a home listing video that will inspire offers to make an offer?

Ok, let’s get this out of the way right up front: We highly recommend that you hire a professional to shoot your home. It’s worth the investment! But even pros can be in need of some direction. So take some inspiration from the videos below, which employ a whole array of Hollywood-worthy tactics to make viewers laugh, cry, sometimes cringe, and often share with others. You don’t need a blockbuster budget to be hilarious, irreverent, or even emotional. So consider these a starting point, and get those ideas—and cameras—rolling.

Comedy

A little high-nostalgia humor goes a long way toward selling a home. At least, that’s what we learned watching this video inspired by “Ferris Bueller’s Day Off” showing kids playing hooky and cavorting around in their $48.5 million mansion while their parents are away.

Be like Apatow: You don’t need a huge budget to create a funny video of your home. All you need is a sense of humor to write your own schtick. Make people laugh, and they willshare.

Horror

This is probably the easiest and cheapest genre of the bunch to produce. Beware: The gross-out factor can be off-putting, unless properly deployed.  Just ask Realtor® Paul Gomberg, who shot an amusingly disgusting video of a property he deemed “Houston’s Filthiest House.”

Gomberg took viewers on a tour of a two-story home that had been inhabited by 12 dogs, six cats, a potbellied pig, and owners who couldn’t be bothered to pick up after them.

“I like to tell the truth. Being honest and upfront has brought me a lot of business,” Gomberg told realtor.com®. And honesty paid off. The house quickly got 16 offers.

Be like Cronenberg: Go ahead and show off your home, warts and all—this is one time when it’s all right to let it all hang out. Why not film your place after your amazing New Year’s Eve party, or after a new puppy wreaks havoc and rips apart your pillows? Might as well turn that mess into something potentially productive—like a home listing video—before you clean up.

Warm and fuzzy

Selling a home can be ultra-emotional because of all the memories you’ve built there. And while buyers are more interested in creating their own happy memories, you can show them how to do just that. Be shameless! Tug the heartstrings of buyers, and you can inspire them to follow in your footsteps—right into your home. That’s the mentality behind these home sale videos by RUHM creative director Opie Opfer.

“We bring emotion into it and tell a story, just like they do in film,” says Opfer. “The object is to bring heart and soul to the project.”

Be like Ephron: Odds are you have video footage of happy scenes in your home. Why not splice together the highlights to a nostalgia-inducing playlist? It will double as a home video you can enjoy years after you’ve left the premises. For aerial shots, you can often find drone photographers on Craigslist—but they’ll need a permit to shoot for commercial purposes.

Drama

This video of a married couple divorcing seems more like a soap opera than a listing for a home. But that’s the whole point: “Property drama” is a new trend that employs amateur “actors” (in this case, the home’s actual owners) to play out an intriguing plot while the home serves as the gorgeous backdrop.

Be like Bergman: Write a short script, then recruit your pals to perform the roles. The acting may be bad, but hey, the homeowners above aren’t exactly going to win any Oscars, either! And talk about fun: Who hasn’t dreamed of becoming a soap star at one point?

Celebrity cachet

In some circles, the fact that the home once belonged to a celebrity can add several hundred thousand, if not a million, to the price tag. So why be coy about its pedigree?Michael Jordan‘s Realtor Kofi Nartey of The Agency put it all out there in an aggressive video featuring Jordan’s regulation-size basketball court, his fully equipped gym, and even his shoes.

Be like Fellini: Assuming that you’re not a celebrity and that none ever lived in your home, you could make a video mentioning what famous stars or characters would have loved it there. Would the Kardashians have enjoyed gathering in the grand dining room? Is the kitchen worthy of Rachael Ray?

Read the original article here

The outlook is good for the luxury real estate market, according to The Institute for Luxury Home Marketing’s Housing Report for the first week of April 2016.

Although it’s currently a “buyer’s market,” according to The Institute’s “Market Action Index” — scoring a 28 rating, when 30 or higher favors sellers — it is “cool,” but not “cold.” The 28 score indicates that buyers should expect to find reasonable levels of property selection; the inventory of already-listed homes should last several months at the current rate of sales.

As of April 4, the current National Luxury Composite Price was $1,533,238. In Chicago, it is $1,551,855.

“Our current luxury market is a bit deceiving — it seems to be cooling off, but prices have actually risen over the past year,” says Kofi Nartey, a national trainer for The Institute and luxury real estate broker and managing director of The Agency’s Beach Cities (CA) office. “It’s important to understand the micro-markets and sub-markets in luxury real estate. The factors influencing each market are different. Also, the number of affluent individuals continues to increase, and the desire to buy and sell real estate remains strong.”

Another positive sign is the “Asking Price per Square Foot” variable, hovering around $400. That explains the changes in how luxury homes are constructed and valued. The Asking Price per Square Foot metric has been on the rise steadily since summer 2015.

Additionally, starting in late 2015 and through the first quarter of 2016, we continue to see a decrease in “Days on Market.” Clearly, luxury homes are getting snapped up faster.

And while the number of homes on the market sharply declined at the end of 2015, the inventory of luxury homes has been growing since early 2016, and is currently 22,959.

So while it’s not a hot seller’s market and many key metrics were headed in the wrong direction, there are plenty of indications — like the numbers above — to forecast that the luxury home market will be fine.

To succeed in a “cool” luxury market, there are a number of marketing techniques agents can employ. For luxury buyers, reputation is huge – so luxury agents must have an impeccable image both online and off. Every agent should have a page on their website featuring client testimonials and spotless professional social media profiles.

The more data that agents have to analyze and help them identify “real buyers” – a term we use in training to separate the curious from those who act – the more effectively agents can target their efforts. Data can be leveraged in other ways: regular market update reports, like those provided to members of the Institute and distributed both in print and digital formats, help establish agents as an expert on the market and build their brand. The Institute also offers cost-effective custom mini-brochures for individual properties that are updated every time new market data becomes available. They’re the perfect souvenir for interested buyers to remember a property by.

Read the original article here

Although it’s currently a “buyer’s market,” according to The Institute’s “Market Action Index” — scoring a 28 rating, when 30 or higher favors sellers — it is “cool,” but not “cold.” The 28 score indicates that buyers should expect to find reasonable levels of property selection; the inventory of already-listed homes should last several months at the current rate of sales.

As of April 4, the current National Luxury Composite Price was $1,533,238. In Chicago, it is $1,551,855.

“Our current luxury market is a bit deceiving — it seems to be cooling off, but prices have actually risen over the past year,” says Kofi Nartey, a national trainer for The Institute and luxury real estate broker and managing director of The Agency’s Beach Cities (CA) office. “It’s important to understand the micro-markets and sub-markets in luxury real estate. The factors influencing each market are different. Also, the number of affluent individuals continues to increase, and the desire to buy and sell real estate remains strong.”

Another positive sign is the “Asking Price per Square Foot” variable, hovering around $400. That explains the changes in how luxury homes are constructed and valued. The Asking Price per Square Foot metric has been on the rise steadily since summer 2015.

Additionally, starting in late 2015 and through the first quarter of 2016, we continue to see a decrease in “Days on Market.” Clearly, luxury homes are getting snapped up faster.

And while the number of homes on the market sharply declined at the end of 2015, the inventory of luxury homes has been growing since early 2016, and is currently 22,959.

So while it’s not a hot seller’s market and many key metrics were headed in the wrong direction, there are plenty of indications — like the numbers above — to forecast that the luxury home market will be fine.

To succeed in a “cool” luxury market, there are a number of marketing techniques agents can employ. For luxury buyers, reputation is huge – so luxury agents must have an impeccable image both online and off. Every agent should have a page on their website featuring client testimonials and spotless professional social media profiles.

The more data that agents have to analyze and help them identify “real buyers” – a term we use in training to separate the curious from those who act – the more effectively agents can target their efforts. Data can be leveraged in other ways: regular market update reports, like those provided to members of the Institute and distributed both in print and digital formats, help establish agents as an expert on the market and build their brand. The Institute also offers cost-effective custom mini-brochures for individual properties that are updated every time new market data becomes available. They’re the perfect souvenir for interested buyers to remember a property by.

Read the original article here

The state may be a capital of cosmetic surgery, but it’s not just noses and eyelids falling under the knife. Buyers pay exorbitant sums to buy old, frumpy houses and even more to fix them up

Justin and Michelle Wilson didn’t have much of a choice when they turned a $1.58 million ugly duckling into a $3 million swan.

There were very few options in Mountain View, Calif., within their $2 million budget, and each house they liked got snapped up in a bidding war. So they settled for a dated $1.58 million beige-and-brown Tudor-style house and gave it a $600,000 makeover that took seven months. Now, the contemporary home’s facade features stucco, stone and steel as well as a striking portico.

“It makes us happy to drive up and come home,” said Mr. Wilson, a 34-year-old financial executive.

If listed today, the home would likely sell for about $3 million, said Brett Jennings, a broker associate at Keller Williams Bay Area Estates. “Buyers are paying a premium for homes that are updated, and a premium-plus for the modern aesthetic,” he said.

California may be a capital of cosmetic surgery, but it’s not just noses and eyelids falling under the knife. A hot housing market is driving buyers to pay exorbitant sums for old, frumpy houses, knowing they’ll pay plenty more to remake them to modern tastes. Others currently own dowdy houses and choose to renovate rather than relocate.

While the dynamic is playing out in a number of U.S. cities, California’s plight is particularly intense because of Proposition 13, a 1978 amendment to the state constitution. It set property taxes based on 1975 assessments and capped future property-tax increases at 2% a year. The catch: When a home in California is sold, the property is reassessed based on its current sale price, resulting in a large tax increase for the new buyer. To avoid this tax hit, many homeowners simply stay put rather than move, which further suppresses the inventory of home listings and keeps prices high.

“Prop. 13 has a strong tendency to keep people in homes longer than they otherwise would be,” said Paul Habibi, a professor of real estate at the Ziman Center for Real Estate the University of California, Los Angeles. “If the market is rising faster than the assessed values, you have all the economic incentive to stay in place,” Mr. Habibi said.

A study released in 2005 by the National Bureau of Economic Research, a Cambridge, Mass.-based think tank, found that in California, on average, homeowners stay put for 1.4 years longer than in other states due to Proposition 13. In coastal cities, the “lock-in effect,” as the study called it, is even higher. Homeowners in Los Angeles stay put over two years longer, and San Francisco homeowners keep their homes over three years longer than homeowners in other states.

When Marc and Jen Roskin, both 47, wanted to enlarge and modernize their Manhattan Beach, Calif., home, they didn’t even contemplate moving, since their property taxes are based on the $1.315 million purchase price in 2004. “It’s cheaper to keep our house and to renovate,” said Ms. Roskin, a jewelry designer.

They hired Robert Sweet of Ras-a, a Los Angeles design and build firm, to transform the Spanish-style bungalow into a white modernist cube. Parts of the house are clad in burnt-cedar siding, a process borrowed from Japanese tradition. Contractors blow-torched unstained cedar on site, “which burns the sugars in the woods, making it impervious to bugs and weather,” Mr. Sweet said.

The project also made the home’s exterior spaces dynamic and usable, said Mr. Roskin, a producer and director. One side of the house includes a built-in barbecue, outdoor shower, fireplace and a pass-through window that connects to the kitchen. The other side has a terrace with seating. The Roskins declined to disclose project costs.

Daniel M. Salzman, principal of Evergreen Design Build in Manhattan Beach, estimated it would cost between $1.3 million and $1.6 million to transform a comparable home to a similar result.

The house today would likely sell for somewhere between $3.5 million and $3.75 million, said Kofi Nartey, director of the sports and entertainment division at the Agency, a Los Angeles brokerage. In its unrenovated state, it would have fetched about $2 million on today’s market, Mr. Nartey estimated.

Not all exterior makeovers are moneymakers, due in part to the capricious nature of facade fashion. Nine years ago, a married couple dabbling in house flipping hired Los Angeles architectural firm Poon Design to turn a rundown Bel Air contemporary into a Mediterranean dream house.

“It was a no-brainer back then to convert it to Mediterranean for the market,” saidAnthony Poon, a principal of the firm. The architects’ design called for a rotunda in the heart of the house, a clay-tile roof and hand-troweled plaster. Romantic outdoor spaces feature a fireplace and wood trellises. Mr. Poon estimated that today it would cost around $3.5 million to do the same to a similar, 9,000-square-foot house.

But by the time the house was finished 28 months later, the housing crisis had depressed the market considerably. Another problem: Mediterranean houses were no longer hip, and the modern look came roaring into vogue. The house sold for $6.35 million in 2009, though it had been listed for $9.5 million, said John Kim, a principal at Poon Design.

William Tran, an agent for Sequoia Real Estate, a boutique agency, represented a small group of local investors in the purchase of a small, nearly windowless house clad in faux-stone in San Francisco’s Noe Valley neighborhood in 2012. The investors paid $908,000 for the property and hired Mr. Tran to be the project manager of the redesign.

The plans enlarged the home to 2,750 square feet and gave it a sleek exterior featuring glass, aluminum and integrated lighting. In total, $1.3 million was put into the renovation, Mr. Tran said. This past August, Mr. Tran said he helped sell the property to a tech entrepreneur for just over $4 million.

“If you have a modern-looking home, and a brand new home, you’ll get the money,” Mr. Tran said.

Scott Croyle, 44, chief design officer for a technology company, and his wife, Michele Godwin, 43, a teacher and librarian, also wanted a modern style house in San Francisco. Instead of shopping for a new home, they hired architect Cary Bernstein to turn their squat, stucco house—“it looked like the Alamo,” Mr. Croyle said—into a larger contemporary house.

Getting through the planning and permitting phase took about a year and a half—“which is not bad for San Francisco,” Ms. Bernstein said. “The city gives a lot of scrutiny to how your project is going to fit into the neighborhood,” requiring plans, drawings and a written narrative, Ms. Bernstein said. Construction was complex, involving expanding the house out to both sides and doubling the size to 1,970 square feet.

Ms. Bernstein then turned her attention to the exterior. Aiming for modern while avoiding “the glass box look,” Ms. Bernstein clad the house with natural, textured materials, such as clay tile and cedar siding.

Joey Toboni, managing partner of the Toboni Group, a high-end builder in San Francisco, estimated that it would cost roughly $800,000 to $900,000 to renovate a comparable property to a similar standard.

The house today would likely sell for $2.25 million, said Mary Ann Montano, a broker associate at Coldwell Banker’s Pacific Heights office in San Francisco. If it went to market in its smaller, unrenovated state, it might sell for $1.25 million, Ms. Montano said.

Mr. Croyle, however, has no plans to capitalize on his investment. “We built the ideal house for us and can’t imagine leaving the home,” he said.

By Leah Kouba

1. What is your favorite thing to do when you’re not playing hockey?

Favorite thing to do when I’m not playing hockey would have to be playing music or going to see live music.

2. Of all the cities you have been to, which is your favorite?

Of all the cities I go to I’d have to say either Dallas or LA.  Anytime I can get some place warm I usually enjoy as hockey is always in a cold atmosphere.

 3. Most families/friends hang out around the kitchen.  What dish would Ryan O’Reilly make to keep them there?

This is a tough question because I don’t have that many, but I feel I can make a nice lentil pasta dish with lots of fresh vegetables and very healthy.  Most people like it.

 4. What is your dream vacation destination?

For a dream vacation, I think a golf trip some place would be great.  I love Ireland and have been there, but would love to also travel to Spain with a few close friends.

 5. What would your dream home consist of? What is personal home style?

For my dream house, I would love something either a lake or the ocean, possibly overhanging with a lot of glass. It would be modern but with a lot of textures and unique materials.  The front of the house would have a lot of trees to get a feeling of being in the woods and the main view from inside the house would be of the water.  I would love a living wall with greenery and running water inside the home.

 6. Any upcoming projects we should know about?

I’m starting to work on building a small cottage located on a lot a little bit inland from Lake Huron.  It’s going to be much smaller than what I picture my dream house being.  It’s going to consist of one big, main room facing the lake with a little view. A glass hallway will lead to three bedrooms sectioned off like pods all looking out into the woods with floor to ceiling glass.  I want each room to have its own little cottage feeling.

 7. What do you love about playing in the NHL?

There are so many things I love about playing in the NHL.  I feel it’s the greatest game out there. The speed of the game is so challenging and there are so many different skills that come into play.  Being a team sport, you develop so many great relationships and constantly push each other to grow and succeed.  There’s nothing else I’d rather do.

 8. Who, either former or current NHL player, do you look up to?

As a kid, my brother and I wanted to do everything Wayne Gretzky did.  The things he did with the puck were so different and amazing to us.  He was one of the main players I looked up to when I was young.  As I got older, Pavel Bure was fantastic player who I would sometimes pretend to be.

2014 NHL Awards – Inside