What Is a Binding Estimate?

learning about a binding estmate

The whole experience of moving can be very stressful because it comes with many variables. If you’re doing it for the first time, it can seem like there is so much to know and consider and nowhere to find out. Does it matter whether you hire a local moving company or not? Should you get extra insurance for your most valuable possessions? Which of your belongings should you pack and take with you and which should you leave behind? And finally, what is a binding estimate and should you get one? We will try to give you the low-down on the types of estimates when moving and why a binding estimate might be a good idea.

Types of estimates

Knowledge is power when it comes to moving. The more information you have about what different moving companies offer, the better equipped you are to choose the right one. Understanding moving company estimates can aid you greatly in reducing the overall cost of your move. Here are the three basic types.

  • Non-binding estimate. This is the basic estimate you get and experts say you should be wary of it.
  • Binding estimate and binding not-to-exceed estimate. You may be wondering, should I choose the binding or non-binding moving estimates? Experts suggest erring on the side of caution.
researching moving companies and binding estimates
Researching what companies offer a binding estimate can even help you save money.

A non-binding estimate

As mentioned, this is a typical estimate that moving companies offer, but it may not be in your best interest. A moving company may try to lure you with a lower estimate and then make you pay much more money when your stuff ends up weighing more than estimated. You would be left with an unexpectedly high bill that the mover will expect you to pay after the move. First, you will have to pay the original estimate with 10 percent on top of that if your things end up weighing more than estimated. After that, you will have 30 days to pay for the difference between the original estimate and the actual weight.

know what is in your moving contract
It is very important to know exactly what is in your contract with the moving company.

Binding estimates

Now that we got that out of the way, it’s time to consider the binding estimates. Both of these estimates ensure that you won’t have to pay over the cost that was estimated when you signed the contract with your mover. Most reputable moving companies offer at least one of these estimates and you should consider carefully which one works best for you. Even though all of these administrative challenges might seem taxing, it is important to consider them when moving. Understanding moving company estimates can turn out to be a great money-saving strategy.

Binding estimate

This is the kind of estimate that movers offer where the estimate is fixed. So whatever estimate they make as their offer, that is what you pay in the end. However, this can sometimes work out poorly for the customer, as your possessions can end up weighing less than what was originally estimated. In the case of this kind of binding estimate, you would still have to pay the amount that you agreed on when you signed the contract. Sometimes these types of estimates can be quite high because the movers want to ensure they get paid appropriately.

In order for you to get the best offer, experts suggest getting in contact with several different moving companies. Most companies offer free moving quotes on their websites. So, if you went to a site like divinemoving.com, you could get an estimate from the comfort of your home. Then all that’s left is to compare the estimates and choose the best value-for-money option.

Binding not-to-exceed estimate

This is another one of the types of estimates and companies sometimes call it a guaranteed-not-to-exceed estimate. This binding estimate is usually the most popular one with customers as it is the most straightforward one. Basically, you get an estimate and once you agree to it, that is the amount you pay at the end, whether your possessions weigh more or not. The reason it is so popular is that you actually pay less than the estimate if your belongings end up weighing below their estimated weight. If you choose this one, you won’t have to worry about getting taken advantage of.

planning a business move online
Moving your whole business can seem scary, but you can find good movers online.

Choosing the right moving company

As previously mentioned, people often disregard many aspects of moving as they can seem intricate and time-consuming. This is what some moving companies are counting on. They expect you not to read the fine print and not to be informed about your options. This is why it is important to find a moving company with a good reputation that won’t try to pull the wool over your eyes. Most of these things you need to pay attention to aren’t that difficult to research. You can even do most of them from your home or your office.

Using the internet can be of great help when moving, both as a time saver and as a tool for comparing different options. Moving house is stressful and moving your whole business can seem even worse. You shouldn’t worry, however. For example, if you need to look for office movers from NY online, you can easily do that. This way, you can gather all your information and estimates and make the choice that best suits your needs.

Should I choose the binding or non-binding moving estimates?

All things considered, choosing a binding estimate comes with greater advantages for the customer. Bear in mind that the estimate the moving company gives you is only the money you have to pay them. Moving, however, can come with many other additional costs. If there is a way for you to save money when moving or not worry about the amount you will have to pay in the end, why not take advantage of that?

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