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Council approves exclusive listing for 13 vacant lots, debates cleanup and veteran-first sales window
Summary
The council approved exclusive listing agreements with Keller Williams for 13 city-owned vacant lots and debated whether the city should clean the properties before sale; council set a veterans-first period and authorized staff to proceed with oversight and CMAs as needed.
The Dearborn Heights City Council voted to approve 13 exclusive listing agreements with Keller Williams for city-owned vacant lots after clarifying broker-fee language and debating a property-cleanup strategy designed to improve saleability.
Keller Williams representative Fadua told the council the commission language should align with the city's master listing agreement (2% to the listing broker or $1,000, whichever is greater), and council members amended the motion accordingly before passing the listing agreements. Staff and the mayor said all 13 parcels are vacant lots, although older Google images in the packet occasionally showed homes at some addresses; Keller Williams confirmed site visits and provided pictures verifying vacancy.
Council debate focused heavily on whether the city should pay to clean and clear tax-foreclosed properties before listing. Supporters argued modest cleanup costs would enable market-rate sales and broaden buyer eligibility (owner-occupant purchasers and VA loans) rather than limiting sales to cash-only investors. Opponents cautioned that cleanup expenses might not appreciably increase sale value for severely damaged properties and urged careful use of taxpayer funds.
Council adopted a process that leaves final cleanup scopes subject to approval and recommended staff provide comparative market analyses (CMAs) and itemized cleanup estimates to inform decisions; council also maintained a veterans-first 10-day purchase window (then owner-occupied preference period) as part of the sales strategy.
Why it matters: The policy affects neighborhood stabilization, tax-foreclosure asset disposition, and whether properties can be marketed to owner-occupants rather than investors. The cleanup approach will determine upfront city costs and timing for sale proceeds to return to the city treasury.
Next steps: Keller Williams will proceed with listing; staff will provide CMAs, detailed cleanup estimates and address lists to council members. The council reserved authority over purchase approvals and final sale terms for individual parcels.
