Dearborn Heights council selects Keller Williams Legacy to market city properties after tense debate over commission split

Dearborn Heights — The City Council voted Dec. 9 to award brokerage services for city-owned property sales to Keller Williams Legacy amid sustained public comment and a lengthy council debate over how broker commissions and buyer-agent fees would be handled.

Councilman Robert Constant moved to award the work to Keller Williams Legacy at a fee not to exceed 3%, and Councilman Ray Muscat seconded. The motion directs corporation counsel to draft a contract that reflects the council’s direction on commission-splitting and return the agreement for council approval. One councilmember recused from the vote; the motion carried with six yes votes.

Multiple residents and real-estate professionals spoke during public comment, seeking either to be chosen or to ensure fast disposition of the properties. Michael Phillips of KW Legacy said his firm responded to the city’s RFP, described a plan to prioritize first responders, teachers and veterans with an early purchase window, and urged the council to move quickly so the city can “recover these assets and move on.” Other brokerages and local agents also presented credentials and urged the council to award the contract.

Council discussion focused on how to structure the commission so outside brokers would still participate. Several councilmembers argued that the 3% commission should be split evenly between the buyer’s and seller’s agents (1.5% each) to make listings attractive to cooperating agents. Corporation counsel and several brokers warned that the city—acting as seller—cannot unilaterally undercut fiduciary responsibilities and that final contract language should be carefully drafted.

Mayor Mo Baidoun and the administration emphasized urgency: the adopted budget assumes roughly $1.5 million in proceeds from property sales to help close the fiscal gap by June 30. Administration staff told the council there are about 60–70 properties in the program, roughly 30 of which are vacant land.

The council’s action names a broker to negotiate the contract but does not finalize sale terms. Corporation counsel will prepare the agreement, including commission-split language and seller protections, and the contract will return to the council for final approval.

What happens next: corporation counsel will draft the contract under the council’s direction and bring it back for council review and a vote; if a broker and the city cannot agree to final terms, the city retains the option to select another brokerage.

Speakers quoted in this article are drawn from public comment and council debate at the Dec. 9 meeting. The council did not vote on any individual property sale at the meeting.