Navigating Realtor Commission Shares in Real Estate

Visual representation of commission distribution

Intro

Navigating the real estate labyrinth can feel like a mix of excitement and trepidation. One pivotal aspect that most buyers and sellers encounter during their journey is the realtor commission share. It’s not just a mere formality; understanding how realtor commissions work is crucial for making informed decisions that can directly impact your finances.

When we talk about commission shares, we’re diving into a topic that influences not only the agents involved but also the buyers and sellers they represent. This article aims to break down the complexities surrounding realtor commission structures, offering insights that empower individuals engaged in the buying or selling process.

In simpler terms, commissions are essentially the fees paid to real estate agents for their services. But how are these fees determined? What factors come into play when agents split their commission? Understanding these elements can mean the difference between a deal that feels fair and one that leaves you with a sour taste or a significantly lighter wallet. Whether you're a first-time buyer or a seasoned seller, the nuances of commissions can sway your experience. Let’s take a closer look.

Prelude to Realtor Commission Structures

Understanding realtor commission structures is like getting the lay of the land before making a significant investment. It’s vital because the fees associated with buying or selling a property can vary greatly. Each agent or agency has its own policies regarding how they handle commissions. This section delves into what realtor commissions really mean and why they are an essential part of real estate transactions.

Defining Realtor Commission

Realtor commission refers to the fee paid to real estate agents for their services during the buying or selling process. Usually, this commission is calculated as a percentage of the property sale price. For instance, if a house sells for $300,000 and the agreed commission rate is 6%, the total commission would be $18,000. This amount is typically split between the listing agent and the buyer's agent.

It’s important to understand that the exact percentage can differ based on several factors, including local market conditions, the property type, and the agent's experience. In many cases, this commission is negotiable, giving buyers and sellers a bit of leeway when discussing terms with their agents.

Importance of Commission in Real Estate

The importance of commission in real estate cannot be overstated. Commissions play a pivotal role in the functioning of the real estate market. Here are a few key points to consider:

Incentivizes Agents: Commissions motivate agents to work diligently in both buying and selling transactions because their earnings are directly tied to their performance. A motivated agent can mean the difference between a quick sale and a prolonged listing period.
Reflects Market Trends: Commission rates often reflect broader market conditions. In a hot market, you might find commissions slightly lower, as properties tend to sell quickly, while in cooler markets, agents may charge more to compensate for longer periods without sales.
Impacts Buyer and Seller Decisions: For sellers, the commission can significantly affect the net proceeds from the sale. A higher commission might deter sellers from listing while a lower one might bring more buyers to the table.

"Real estate agents are like the conductors of an orchestra; their expertise ensures that all the instruments play in harmony, leading to a successful transaction."

Overall, having a grasp of realtor commissions equips you with the knowledge to navigate negotiations and make informed decisions when it comes to property transactions. This understanding isn't just beneficial—it can be critical in ensuring financial outcomes align with your goals and expectations.

The Basics of Realtor Commission Shares

How Commissions are Calculated

Often, commissions in real estate are calculated as a percentage of the final sale price of a property. This percentage usually varies depending on multiple factors like the property type, market conditions, and the agreement made between the agent and their client. Here’s how the process typically unfolds:

Agreement: The seller and the listing agent agree on a commission percentage before the property goes on the market.
Transaction Completion: Once a sale closes, this agreed-upon percentage is applied to the sale price. For instance, if a home sells for $300,000 and the commission rate is set at 6%, the total commission would amount to $18,000.
Distribution: This total commission is typically split between the seller’s agent and the buyer’s agent. The division can be influenced by agreements with brokerages or individual negotiations.

The above steps illustrate that commission calculations are not as simple as just applying a percentage; they involve negotiations and agreements that can vary significantly from one transaction to another. Furthermore, factors such as the negotiable split between agent and brokerage can play a crucial role in determining the final amount received by the real estate agents involved.

Standard Commission Rates

Standard commission rates often hover around 5% to 6% of the property sale price; however, this is more of a guideline than a hard and fast rule. Even though they can sometimes feel as fixed as the North Star, it's vital to recognize the flexibility in these rates under different circumstances:

Market Variations: In a hot seller’s market, where properties are flying off the shelves, agents might agree to lower commission rates just to secure a deal. Conversely, in a cooler market, agents may stick to the traditional rates to cover the increased effort involved in selling slower-moving homes.
Service Levels: The services provided also influence fee structures. For example, agents offering full-service experiences may command higher commissions compared to those providing minimal guidance.
Negotiate: An educated consumer can negotiate lower rates, especially for homes that are already competitively priced, or if they feel confident in the selling process.

It's crucial to remember that while understanding standard commission rates is instrumental, not all rates apply universally. Instead, knowing that these rates can shift significantly based on context empowers both buyers and sellers to engage in more informed and fruitful negotiations.

As you navigate the complexities of realtor commission shares, keep in mind that transparency is key. Familiarizing yourself with how commissions are calculated and the standard rates can better prepare you for the negotiations ahead.

Roles in Commission Sharing

Understanding the roles of different agents and brokerages in commission sharing is crucial. The dynamics at play can significantly affect not only the negotiations between agents but also the end results for buyers and sellers alike. A deep dive into these roles helps demystify many aspects of real estate transactions and sheds light on what individuals can expect when navigating this world. It can be helpful to know who does what and how their interactions influence the commission structure.

Listing Agent vs. Buyer’s Agent

Listing agents and buyer’s agents serve distinct purposes in real estate transactions, and this distinction is essential in understanding commission shares. The listing agent is responsible for representing the seller, tasked with getting the best price possible for their property. They usually set the initial price, arrange showings, and manage all marketing efforts to attract interested buyers.

In contrast, the buyer’s agent operates on behalf of the purchaser, helping them find suitable properties and negotiate terms favorable for their client. This dynamic creates a balance where both agents typically share the commission set by the seller, often predetermined in the listing agreement.

Here are some key points of differentiation:

Responsibilities: Listing agents focus on marketing the property, while buyer’s agents prioritize helping clients find a home that fits their needs.
Fees and Commission Splits: The listing agent often negotiates a percentage that is shared with the buyer’s agent, making it crucial for both parties to understand the final agreement and each other's contributions.
Client Relationships: Every agent builds a relationship with their respective clients; strong communication and trust can lead to higher chances of success for both sides.

Understanding what each agent does allows clients to navigate their relationships better, ensuring that both parties are on the same page. It's a collaborative effort, where communication is the backbone of the process.

Factors influencing real estate commission agreements

Brokerage Influence

The role of brokerages in commission sharing is another pivotal piece of the puzzle. Brokerages can wield significant influence over both listing and buyer agents regarding how commissions are structured and distributed. Each brokerage may have its own rules that dictate the percentage split of commissions between agents, which ultimately affects how each agent conducts their business.

Factors influenced by the brokerage include:

Commission Structure: Some brokerages offer agents a higher percentage of the commission, while others might utilize a flat fee approach. This can incentivize agents differently, affecting their strategies.
Training and Support: Brokerages provide resources, training, and support that can help agents negotiate better deals or attract more clients. Those resources can significantly impact an agent’s performance and success in commission negotiations.
Market Positioning: The reputation of a brokerage can dictate how commissions are perceived by clients. A well-known, trusted name may have more leverage in negotiations, leading to better terms for their agents.

"Understanding the dynamics of brokerage influence can give buyers and sellers a distinct advantage in their real estate transactions."

In summary, recognizing the distinct roles that listing agents and buyer’s agents play, along with the influence that brokerages have in shaping commission structures, is vital for anyone looking to engage in real estate. It shapes the expectations and experiences of all parties involved, leading to a clearer understanding of how commission shares might work in specific cases.

Negotiating Commission Agreements

Negotiating commissions in real estate can feel a bit like dancing on a tightrope. One misstep and you might find yourself falling flat. However, if done right, negotiating commission agreements can lead to a win-win situation for all parties involved. It’s especially crucial to understand this process when dealing with the complexities of real estate transactions.

Negotiation isn’t just about haggling over a fee; it’s about cultivating a relationship built on trust and transparency. The outcome of these discussions has real financial implications, influencing the net proceeds for sellers and the overall satisfaction for buyers. So, let’s break it down into bite-sized pieces so you can navigate through this process with confidence.

Factors Affecting Negotiation

Several distinct factors can steer the negotiation process. Understanding these can equip you with the necessary tools to advocate for your best interests. Here’s a closer look at some key elements:

Market Conditions: The current state of the real estate market plays a pivotal role in commission negotiations. In a hot market, sellers might be less willing to lower commissions, whereas a cooler market may provide more room for negotiation.
Property Type: More niches or unique properties can lead to different expectations regarding commissions. Luxury homes may carry higher percentages due to their specialized sale process.
Agent Experience: An agent's reputation and track record can impact their negotiating power. An experienced agent may feel justified in commanding a higher share because of their proven results.
Transaction Complexity: A straightforward sale usually involves simpler negotiations. But a complicated transaction, perhaps with multiple buyers or legal hurdles, could see commissions vary widely based on the additional work needed.

It’s imperative to stay attuned to these factors and to use them to guide your discussions.

Common Strategies Used

When it comes to negotiating commissions, certain strategies can help level the playing field. Here are some approaches worth considering:

Researching Commissions: Before you step into any negotiation, it helps to have a grasp of the going rates in your area. Knowledge is power, and being well-informed can bolster your position.
Tailoring Proposals: Customize your negotiation proposal to highlight unique aspects of the transaction. For instance, presenting extra marketing efforts or staging can justify a higher commission.
Flexibility: Sometimes, offering flexibility in payment structures can sweeten the deal. This might mean proposing a sliding scale where the commission is tied to sale price milestones.
Communicating Clearly: Open dialogue fosters trust. Make your expectations clear, and encourage the other party to do the same. A collaborative approach often leads to more favorable outcomes.
Win-Lose vs. Win-Win: Shift the focus from competing interests to finding common ground. For instance, suggesting performance-based incentives can align the seller's and agent's goals.

These strategies, while not exhaustive, provide a solid foundation for approaching commission negotiations in real estate.

"Successful negotiations aren’t just about squeezing the last dollar out of a deal; they’re about creating partnerships that last beyond the closing table."

In the end, navigating commission agreements is an art that can lead to peace of mind when done with foresight and strategy. By understanding what influences these discussions and applying sound negotiation tactics, both buyers and sellers can ensure their interests are duly represented.

Implications of Commission Sharing

Commission sharing in real estate plays a pivotal role in shaping several aspects of property transactions. Agents often see commissions as a primary revenue stream; however, the implications stretch beyond their financial success. From determining net proceeds for sellers to influencing buyer decisions, it's vital to understand the far-reaching effects of these commission structures. This understanding allows stakeholders to approach real estate deals with clarity and foresight.

Impact on Seller's Net Proceeds

Selling a home involves numerous costs, and the realtor's commission is typically one of the largest expenses. This percentage, often ranging between five to six percent, affects the amount of money the seller ultimately walks away with. Let's break this down:

Total Sale Price Calculation: When a home sells for, say, $300,000, a 5% commission equates to $15,000. This deduction comes right off the top. Hence, sellers need to factor this into their pricing strategy from the get-go.
Net Proceeds: For a seller, the net proceeds result from the sale price minus all transactional costs, including commissions and closing fees. If those numbers aren't mapped out early, sellers may find themselves crunched, wiping out their expected gains.
Market Dynamics and Pricing: In a competitive market, sellers might be inclined to lower their prices to attract buyers. But this could inadvertently place more burden on their net proceeds when commissions are taken into account. They have to strike a balance between urgency and profitability.
Negotiations: Some sellers may choose to negotiate the commission rate or may explore alternatives like flat fees to retain more of their profits. Understanding this gives them a bargaining chip during the selling process.

"Only by being informed about how commission impacts their bottom line can sellers make strategic decisions that lead to positive outcomes."

Effects on Buyer Decisions

Buyers, too, are influenced by commission structures although it might not be evident immediately. Here’s how these dynamics play out:

Buyer Agent’s Motivation: When buyers are represented by an agent, it’s crucial to understand that the commission they might be paying indirectly can affect the properties their agent recommends. If the seller's agent offers a higher commission split, there’s an incentive for the buyer’s agent to push those properties.
Transparency in Pricing: Buyers today are more privy to market conditions and commission sharing. If they're aware that a home may be priced higher due to higher commissions involved, it can shape their willingness to proceed or make an offer.
Perspective on Value: The perception of what constitutes "value" can change from buyer to buyer based, in part, on how they interpret the commission implications. For instance, many buyers may feel that high commissions do not equate to better service, which could shift their decision-making process toward agents or properties with lower fees.
Negotiation Power: Savvy buyers might leverage their understanding of commission structures to negotiate better deals not just on properties but also on agent commissions, ultimately affecting their purchasing power.

Trends in Realtor Commission Models

In today's real estate landscape, understanding the evolving trends in commission models is pivotal. As buyers and sellers seek greater transparency and efficiency, traditional methods of compensation are being challenged. This section delves into the ongoing shifts in realtor commission practices, highlighting the critical ways these changes can affect real estate transactions.

Flat Fee vs. Percentage-Based Models

When discussing commission structures, two primary models arise: flat fee and percentage-based systems. Each has its own merits and drawbacks, and recognizing these is essential for both agents and clients alike.

Negotiation strategies for realtor commissions

Flat Fee Model

The flat fee model offers a straightforward approach, charging a specific amount regardless of the property price. This can be particularly beneficial for sellers with properties that are expected to move quickly. Here are some advantages of this model:

Predictability: Sellers know in advance the exact amount they will pay. This can help in budgeting and financial planning.
Simplicity: With a fixed fee, calculations become less complicated, eliminating any surprises when the deal closes.

However, there are drawbacks. If the property sells for a high price, the commission could seem disproportionately low for the efforts put in by the realtor.

Percentage-Based Model

On the flip side, the percentage-based model remains dominant in the industry. Typically ranging from 5% to 6%, this model aligns the agent’s compensation with the sale price of the home. Some pros include:

Incentivization: Agents may be more motivated to maximize sale prices, as their commission is directly tied to the final amount.
Flexibility: For higher-valued properties, the percentage fee can result in a more lucrative deal for agents, making it appealing to many realtors.

Despite its benefits, this model can alienate buyers and sellers who feel that fees are excessive, especially in a slow market.

"Different strokes for different folks; the right commission model often depends on the uniqueness of the transaction."

Determining which model is suitable varies based on individual preferences and property specifics. Being informed about both models enables clients to make educated decisions that align with their financial goals.

Emerging Practices in Commission Distribution

The dynamics of commission distribution are shifting, influenced by technology and consumer expectations. New trends are emerging that rethink traditional methods.

Technology-Driven Innovations

Online Platforms: Websites like Zillow and Redfin are pioneering models that offer lower fees or even rebates, challenging standard practices. These platforms can leverage data to simplify agent selection, giving buyers and sellers a more hands-on approach.
Commission Split Transparency: Many companies are moving toward transparency in commission splits. Providing clients with clear breakdowns fosters trust and accountability in transactional relationships.

Adaptive Practices

Innovative commission practices are surfacing to meet the demands of modern consumers:

Tiered Commissions: Some agents are exploring tiered commission models where rates drop at specific price points, incentivizing higher property sales without alienating sellers.
Buyer’s Rebates and Credits: Offering buyers rebates at closing has become increasingly popular. This not only attracts clients but also enhances the perceived value of a real estate service.

These emerging practices mark a shift towards a more client-centered approach, where agent-client relationships prioritize transparency and mutual benefit. As these trends evolve, the landscape of real estate commissions is likely to continue shifting, affecting all stakeholders within the industry.

Keeping abreast of these trends ensures that all parties can navigate the changes with both wisdom and adaptability, maximizing financial outcomes in every transaction.

Legal Considerations Surrounding Commissions

In the world of real estate, navigating the ins and outs of realtor commissions goes beyond just numbers on a page. It’s essential to understand the legal frameworks governing these commissions, which can dictate how transactions are handled and influence overall market practices. This part of the article looks at the important legal considerations regarding commissions, particularly focusing on disclosure requirements and potential conflicts of interest.

Disclosure Requirements

One primary legal facet in realtor commissions is the requirement for disclosure. Realtors are mandated to share relevant information about the commission structure with their clients. This means clients must be informed of how much they will pay and how the commission will be split between agents. It builds transparency and trust, fostering a more ethical environment for all parties involved.

The laws may differ based on your location, but generally, real estate agents must provide a detailed breakdown in writing. This could include:

Total commission percentage: How much of the sale price is deducted for commission.
Split percentages: What portion goes to the buyer's agent versus the seller's agent.
Additional fees: Any other costs that might impact the overall commission, like administrative fees or marketing costs.

Failure to disclose this information can lead to legal repercussions. Agents could be challenged in court or face breaches of fiduciary duty claims. Proper documentation not only protects the agent but also empowers clients, enabling them to make informed decisions.

"Transparency in real estate transactions is more than just good practice; it is a legal requirement that protects all parties involved."

Potential Conflicts of Interest

Another critical legal aspect revolves around potential conflicts of interest arising from commission structures. Realtors often face situations where their financial interests may not align with those of their clients. This can happen, for instance, when an agent represents both the buyer and the seller in the same transaction—an instance known as dual agency. In such cases, the agent stands to gain from the sale while simultaneously navigating the interests of both parties, potentially leading them to prioritize their commission over client needs.

To comply with legal standards, agents must disclose any instances of this dual agency to their clients. They are also required to obtain informed consent from both parties, making sure that the buyers and sellers are fully aware of the situation. This ensures that clients can decide whether they want to proceed with the transaction under those circumstances.

The implications here can be significant. A lack of clarity can lead to distrust, and if clients feel their agent is promoting their own interests over theirs, it can jeopardize the agent-client relationship. Hence, stringent adherence to these legal requirements is crucial not only for compliance but also for maintaining a good reputation in a competitive market.

Legal considerations surrounding realtor commissions are multifaceted and pivotal. By being equipped with knowledge of disclosure requirements and understanding potential conflicts of interest, both clients and agents can engage on a stronger, more informed footing.

Financial implications of realtor commission sharing

The Role of Technology in Commission Sharing

In today's fast-paced real estate industry, technology plays a pivotal role in redefining how commissions are shared and managed. It's not just about smooth transactions anymore; tech innovations are shaping transparency, efficiency, and overall fairness in commission structures. As the landscape evolves, agents and consumers alike benefit from a clearer understanding of who gets what and why.

Real Estate Platforms and Commission Transparency

Real estate platforms such as Zillow and Redfin are changing the game regarding how commissions are disclosed and understood. These platforms provide valuable insights into average commission rates in specific regions. This visibility helps consumers make informed decisions when it comes to hiring agents.

The advantages of commission transparency include:

Informed Choices: Clients can compare agent fees and services without the guesswork.
Competitive Pricing: Agents may feel inclined to offer more competitive rates knowing their fees are publicly available for comparison.
Enhanced Accountability: With all stakeholders aware of commission structures, there’s less room for disputes over payment.

These platforms often feature user-friendly interfaces where buyers and sellers can access a wealth of data. For example, they might include reviews of agents and breakdowns of typical commission rates, allowing clients to see not just what they pay, but what they are getting in return. It’s a win-win, providing better service for consumers and potentially higher standards for agents.

The Impact of Online Marketplaces

Online marketplaces have revolutionized the real estate industry in more ways than one. Websites like Realtor.com and Trulia serve not just as listing services but also as critical hubs for understanding the commission landscape. With increased access to information, buyers can learn what commissions are standard in their area, often translating to more savvy negotiating.

The impact of these marketplaces extends to several key areas:

Increased Competition: As buyers have more options at their fingertips, agents must differentiate themselves, sometimes by adjusting commission rates or offering additional services.
Peer Reviews and Ratings: Transparency extends beyond commissions to include agent performance, which can tilt the scales of negotiation in favor of buyers and sellers.
Innovative Models: Some platforms are now experimenting with flat fee structures, bypassing traditional commission models altogether. This can make real estate more accessible, especially for those on a budget.

"With the right tools, knowledge becomes power, and power leads to better transactions and satisfied clients."

For further reading, sources such as Wikipedia on Real Estate and Reddit discussions on Real Estate Commissions can provide additional insights.

Comparative Analysis of Commission Practices

Analyzing various commission practices sheds light on how real estate transactions unfold in different settings. The comparative study of commission structures allows agents, buyers, and sellers to understand distinct methodologies. Recognizing these differences not only influences negotiation strategies but also enhances transparency in what typically appears as a patchwork of norms across markets. As real estate is local by nature, understanding these nuances brings clarity to the agent-client relationship.

Regional Differences in Commission Structures

Real estate commissions often vary significantly between regions, influenced by market conditions, local customs, and competition levels. For example:

Urban Areas vs. Rural Places: In bustling cities like San Francisco, it’s common for commissions to hover around the 6% mark, given the higher property values and demand for services that provide greater sales visibility. In contrast, rural areas might witness lower percentages, sometimes falling to 4% or below, where the pool of properties is smaller and the competition less fierce.
State Variations: Some states, such as Texas, have unique regulations affecting how commissions are structured. Agents may face different brokerage models that shape how their compensation is calculated, which can fluctuate based on local laws or industry standards.
Market Timing: During strong seller's markets, agents might be less willing to negotiate their commission rates since homes sell relatively fast. On the flip side, in a buyer's market, commission rates might be more flexible as sellers are eager to entice buyers.

Keep in mind that different areas have their own styles of conducting business. For instance, locales with a high percentage of first-time buyers may see more assistance and lower commissions as agents invest time educating buyers rather than chasing immediate gains.

International Perspectives on Commissions

Diversifying to an international viewpoint reveals that commission structures are not universal. Each country brings its own set of practices influenced by cultural, legal, and economic contexts. Consider these points:

United Kingdom: In the UK, commission rates are often negotiated and may fall between 1% and 3%, with some agents charging a flat fee instead of a commission-based on sale price. This can make transactions simpler but potentially adds complexity when comparing services across agents.
Australia: Australian real estate agents typically charge around 2% to 3% plus GST (goods and services tax) which may give an advantage to buyers as comprehensive information is often bundled in the fee. Here, buyers also benefit from dedicated representation, making understanding commissions even more vital for making informed choices.
Emerging Markets: In developing economies, such as parts of Southeast Asia, the concept of real estate commissions is still solidifying. The rates may be lower, but this might also reflect less competition and resources for agents.

Understanding how commissions are charged around the world can prepare agents and clients for potential negotiation or expectations they may encounter. The adaptability of agents in different settings showcases the diversified landscape of real estate.

In summary, a comparative analysis of commission practices across regions and countries illustrates that real estate operates within varied frameworks. Such insights can guide agents and consumers alike in navigating their transactions, ensuring greater informed commitment when it comes to buying or selling property. For more details on regional specifics, you can refer to respected sources like Wikipedia and Britannica.

Understanding these practices remains key to achieving successful negotiations and fostering transparent relationships within the real estate community.

The End and Future Outlook

In the ever-evolving landscape of real estate, comprehending realtor commission shares is not merely an academic exercise but a financial necessity. As the article outlines, the commission structure is layered, influenced by a myriad of factors ranging from negotiation acumen to market conditions. For those entrenched in property transactions, recognizing the nuances of commission shares can have significant effects on both the buyer's budget and the seller's profit.

Summarizing Key Points

To revisit the foundational elements discussed throughout this article:

Definition of Commissions: Commissions serve as compensation for agents' services, a critical element in a transaction.
Calculation Methods: Understanding how commissions are calculated helps buyers and sellers anticipate their financial commitments better.
Role Differentiation: The split between listing agents and buyer’s agents shapes the overall distribution of commissions. Each role bears specific responsibilities that impact negotiations.
Negotiation Strategies: The ability to negotiate effectively can alter the landscape for both agents and clients alike.
Future Trends: Awareness of emerging trends, such as alternative commission structures, enables stakeholders to adjust strategies accordingly.

By encapsulating these key aspects, individuals can navigate the real estate process with greater confidence and clarity.

Predictions for Future Trends

Looking ahead, several trends emerge that could significantly reshape the commission-sharing framework. These include:

Increased Demand for Transparency: As buyers and sellers become more educated, there’s a heightened demand for transparency in how commissions are structured and utilized. Agents may need to be more forthright about potential conflicts of interest or incentives that could affect client outcomes.
Adoption of Technology: Digital platforms are set to revolutionize how commissions are negotiated and paid. The emergence of apps that facilitate low-cost transactions could shift traditional models, making it easier for consumers to bypass conventional agents altogether.
Flat Fee Models Gain Popularity: As competition intensifies, more real estate professionals may offer flat fee services to attract clients, allowing buyers and sellers to save on commission costs.
Regulatory Changes: Keeping an eye on legislation that could impact commission structures is crucial. Changes in local or national laws may influence how commissions are shared among agents and brokerages.

In sum, the future is teeming with possibilities. Staying ahead of these trends not only prepares stakeholders for shifts in the industry but also empowers them to make informed decisions that could affect their financial standing.