A good moving company estimate is an important step in finding a service that fits both your needs and your budget. But as you seek out moving estimates, one vital factor to understand is which of the three types of estimates it is. What are these three types? Here's what you need to know about each. 

A Binding Estimate

A binding estimate, as its name suggests, is less of an estimate and more of a price offer. The company sizes up what you need done and agrees to a particular amount of money. They won't increase the price unexpectedly at the last minute, but you also won't get any additional discounts if your job turns out to be less complex or lighter. 

However, you can't adjust the size of the workload at the last minute and hope to get free work added in. Instead, changes require either a newly negotiated agreement or a conversion to a nonbinding estimate. 

A Nonbinding Estimate

Probably the most common estimate homeowners receive is a nonbinding estimate. This is truly an estimate, or a price range based on the experience of the movers and what they can tell from this point. The final price may be more or it may be less when the actual move is completed. 

Nonbinding estimates can be good for those familiar with the moving process and who are shopping around for a reliable price range. If it's likely that your final workload will turn out to be less complex in the end, discounts can still be had. But because the final bill will likely change, inexperienced homeowners could be taken advantage of by unscrupulous companies who give low-ball estimates and then charge more later. 

A Binding Not-to-Exceed Estimate

Finally, a good compromise is a binding estimate that allows for a lower final bill if the load ends up weighing less or taking less time than expected. The company agrees to a price but leaves the option of charging less on the table. A binding not-to-exceed estimate can be the best of both worlds when it comes to reliability and potential savings. 

Where to Learn More

Want to know more about the rules and benefits of each type of moving estimate? No matter how distant or close your move, or how much you need to transport, the best place to begin is by talking with reliable moving companies in your area. Ask which type of moving estimate they provide and how you benefit from each. Call for a consultation and get started today.