Rush fees

Price the rush.
Or pass on it.

A rush fee pays for bumping somebody else. Price it that way, and only take the ones you can finish properly.

What is a rush fee paying for?

A rush fee pays for displacement: the other work that gets pushed back so this file goes first.

It is not a fee for working faster. The inspection, the research, the adjustments and the reconciliation take the same effort whether the client paid extra or not. What changes is the order of the queue and, sometimes, the hours. An evening spent writing a rush report is an evening spent on nothing else.

That makes pricing simpler. Skip what the client will tolerate and ask what saying yes costs you: delayed files, irritated regular clients and lost evenings.

How should an appraiser work out the number?

Start from the normal fee for the assignment, then price the disruption on top, rather than bolting on a flat markup that ignores the file.

Three things push the disruption up or down. How full the calendar already is: a rush in a quiet week costs little, a rush in a packed week costs a lot. How hard the property is: a complex rural file on a rush displaces far more work than a tract home with plenty of recent sales. And how far away it is, because drive time comes straight out of the day.

On lender work the fee is not purely a private negotiation. Under Regulation Z, section 1026.42(f), creditors and their agents must pay fee appraisers a customary and reasonable rate for the local market, and the factors listed for adjusting that rate include the time in which the work must be performed. A compressed timeline is a recognized reason for the fee to differ.

Show the rush fee as its own line. A client who can see what priority costs can decide whether it is worth paying for.

When should an appraiser turn a rush down?

Turn it down when the date cannot be met without cutting the analysis.

USPAP applies to every assignment, rushed or not. Competency, scope of work and a credible result do not bend for a deadline. If the comparable research alone will outrun the window, the honest answer is no, or a different date.

Also turn it down when the rush arrives tied to a number. A deadline that comes with a hint about the value needed is a red flag. Fannie Mae lists reporting a value that is not supportable by market data as an unacceptable appraisal practice, and no fee covers that risk.

If the answer is no, say it fast. That leaves the client time to find someone else.

What should the rush terms say before the clock starts?

They should say exactly when the clock starts and what stops it.

Pin down when the window begins. Put these in writing before accepting:

The due date, stated as a calendar date rather than a count of days.
What starts the clock, such as confirmed access and receipt of the contract or plans.
What pauses it, such as a missed appointment or a locked outbuilding.
Whether the rush fee still applies if the delay sits on the client side.

Then the client knows what they bought, and the appraiser is not held to a deadline somebody else broke.

Questions

Straight answers

Should a rush fee be refunded if the report is late?

Settle that in writing before the work starts. Agree what starts the clock, what pauses it, and who carries a delay caused by access or missing documents.

Can a lender or AMC set the rush fee?

They can offer one, and the appraiser can accept or decline. On covered lender transactions, Regulation Z requires fee appraisers to be paid a customary and reasonable rate, and the time allowed for the work is one of the listed factors.

Does a rush fee let an appraiser skip steps?

No. The same standards apply to every assignment. A rush buys a place near the front of the queue, not a thinner report.

Does a rush fee make sense on private work?

It can, as long as the client agrees to it up front. Private clients often face fixed dates, so a stated fee and a stated due date are usually welcome.