Brokers not welcome

I often see the phrases "no brokers please" or "brokers not welcome" appearing in certain "for sale" advertisements while browsing the classified section of our local newspapers. For example, just the other day, I noticed an advertisement (boxed space) in a local daily where an individual was trying to sell xxx decimal industrial land located in Gazipur. The data within the space contained a brief description of the property, contact information of the seller, an asking price of Tk yyy, and the phrase "no brokers please."
In today's service oriented business environment, it is incomprehensible that the advertiser, having stated an expected price, finds a broker or the services of a broker unwelcome for such a transaction. The reason behind such negative attitude towards brokers, that I can think of, could only be 1) the seller had traumatic experience with brokers in the past or 2) the seller is void of any common sense.
The obvious reason the seller of the property (mentioned above) had to resort to advertising in a newspaper is the lack of a marketplace where one could take the title deed to buyers waiting with cash. In other words, there is no physical market for real estate where transactions can be consummated, freely and quickly, without the services of a middleman with expertise in such deals.
Some of the basic reasons behind the requirement of middlemen in real estate transactions are: immobility of the product; infrequent transactions; highly beauracratic and antiquated paperwork; susceptibility to fraud and forgery; difficulties with possession, hidden liabilities, etc.
To fully appreciate the services of a broker, let us consider, for instance, the situation from the perspective of a potential buyer (of the land cited as example) who happens to be a busy manufacturing entrepreneur from Chittagong. The buyer from Chittagong is in the "market" for industrial land near Dhaka for his/her new factory, as part of a major expansion plan. Though the property in Gazipur (appearing in a classified) might be suitable as a potential location, it is unlikely that the busy entrepreneur would have time to go through all the classifieds and spot this particular advertisement.
Nevertheless, even in the case the classified was spotted, he/she would find it difficult to accurately form an idea regarding the size of the property (mentioned in decimals) since a different measuring unit (gondas) is used in Chittagong for this purpose.
In order to evaluate the fairness of the asking price of Tk yyy, the buyer must also acquire solid knowledge of the real estate trends in general, particularly of Gazipur, recent transactions around the area where the property is located, taxes and registration costs, hidden liabilities or lien holders, just to name a few. In addition, he/she must understand the complications regarding transfer and authenticity of title deeds, possession, utility connections, etc., not mentioning the need for a trip to Dhaka just to view the property.
On the other hand, both time and money could have been saved had a professional middleman or a broker been engaged by the buyer for purchasing the required land for the new factory. Ideally, a broker, in real estate or in other industries, should be a licensed professional, qualified on the basis of having demonstrated knowledge and expertise in his chosen field. Brokers should also be guided by ethical and fair business practice codes specific to industries, and monitored by industry regulators for malpractice.
The services provided by the broker, in real estate transactions or in other industries, are usually free until a deal is executed, as the broker's fee comes as a percentage of the transaction value.
The job of a broker can be viewed as a "transaction facilitator" for goods and services lacking a physical market (i.e. real estate, large capital equipment, etc.), or technical in nature (i.e. financial securities, intellectual property etc.). However, a broker may find opportunity in any market, wherever or whenever inefficiencies in the system are present.
Though the term "dalal" would be the right translation in Bangla for "broker," unfortunately, we are accustomed to the term "dalal" as a substitute for "pimp" only. It is true that, technically, a pimp is also a dalal, working on behalf of the "seller" to facilitate transactions with "buyers" for a fee. But, in the true sense, a "dalal" is not a pimp unless pimping has been recognised as a legitimate profession.
Brokerage is a coveted and respected profession all over the world. It is a significant part of the service industry and the economy as a whole in developed nations. Whereas, our attitude towards brokers and the services they provide is reflected in classified advertisements that display phrases like "no brokers please" or "brokers not welcome," and in our interpretation of the translated term for broker.
Having been a broker myself (financial assets, real estate), I find it insulting, discriminatory, prejudiced, and a serious threat towards the growth of the service industry in Bangladesh.

Asif Anwar is a lecturer at Independent University, Bangladesh.