Dearborn Heights council approves Keller Williams listing deal after heated debate over commissions

The Dearborn Heights City Council voted to award brokerage services for the city’s inventory of vacant and distressed properties to Keller Williams Legacy, approving a compromise commission structure and directing the firm to return with individual listing agreements.

Council members spent more than an hour debating commission splits, contract length and protections for owner-occupants. The council approved the master agreement with an amendment providing 2% to the listing brokerage and 1.5% to a buyer’s agent for the current group of properties; Keller Williams will present specific listing agreements for each parcel before properties go to market.

Mayor Beydoun and council supporters said the contract is intended to generate immediate revenue; the mayor said the council must sell roughly $1.5 million in properties this fiscal year to meet budget expectations. Several council members and the administration said the brokerage incurs real marketing costs — photos, signs and outreach — and argued that a 2% listing commission will ensure properties are marketed effectively. Gary Miyake, council counsel, said the RFP allowed a commission ceiling and the city retained the right to cancel the agreement if it did not perform.

Opponents and some public commenters pressed for a higher buyer-agent incentive (1.5% or 1.5%/1.5% split was suggested earlier) and raised concerns that a low buyer-agent commission could reduce outside agents’ willingness to show listings. One public speaker urged deed restrictions that would prioritize owner-occupants over investors and asked the council to reserve at least two houses for disabled veterans.

Council members also discussed the contract term (one vs. two years). Supporters said the two-year term came from the RFP response but noted the city may cancel the contract if it is not in the city’s best interest. The council member who chairs the property committee asked that the committee review proposed individual listing agreements before properties are publicly listed and that deed restrictions could be applied when appropriate.

The motion passed after an amended motion was offered and seconded. The council directed corporation counsel to update contract documents as needed. The administration and Keller Williams representatives reiterated that the firm would assess the inventory and return with per-property listing terms for council approval before homes are placed on the market.

Next steps: Keller Williams will assess the city’s property inventory, propose specific listing prices and bring listing agreements back to the council for approval. The council emphasized that deed restrictions to protect owner-occupancy can be drafted before listings proceed.