Types of Moving Estimates: Which to Offer for Each Job

By price commitment, there are three types of moving estimates: binding, non-binding and binding not-to-exceed. Each estimate also rests on a pricing basis (hourly, flat rate, or weight and volume) and a survey method (in-home, virtual, or a phone call and online form). The combination you choose decides who pays when a job runs bigger than quoted: your company or the customer.

Consumer guides explain these options from the customer's side. You are the one writing the estimate, so your questions are different: which type fits which job, where each one costs you money, and which FMCSA basics apply on interstate moves.

Key takeaways

• Price commitment decides who absorbs a miss. Binding and not-to-exceed estimates put it on you; a non-binding estimate shares it with the customer, within limits.
• On interstate moves, estimates must be in writing, and you cannot demand more than 110% of a non-binding estimate at delivery.
• Hourly pricing suits local moves with uncertain volume. Flat rates suit well-surveyed jobs where the customer wants certainty.
• The firmer the price, the more complete the survey has to be.
• Write down which estimate type you offer for each kind of job so your estimators quote the same way.

The three decisions inside a moving estimate

Estimators often blur these together. That is how a company ends up with a “flat rate” that behaves like an hourly quote, and a customer who feels misled. Separate them when you write your estimating policy:

• Price commitment: how firm the number is. Binding, non-binding or binding not-to-exceed.
• Pricing basis: what the number is built on. Crew hours, a flat rate for a defined scope, or weight or cubic feet for long distance.
• Survey method: how you learned what is moving. An in-home walkthrough, a video or guided self-survey, or a phone call and an online form.

One rule ties them together: the firmer the price, the more complete the survey. A binding number built from a phone call depends on the customer remembering everything in their garage.

Binding, non-binding and binding not-to-exceed

Binding estimate

A binding estimate fixes the price for the goods and services listed on it. The customer knows the final number before the truck arrives, which makes binding estimates easier to sell on long-distance moves where people are budgeting a large expense.

The risk lands on you. If your estimator missed a basement full of boxes, you carry that time and truck space at the agreed price. Treat the inventory as part of the deal: the price covers what is listed, so make the list complete and have the customer confirm it. On interstate moves, know what Part 375 lets you do when a customer adds items before loading, and train your foremen on it.

Non-binding estimate

A non-binding estimate is your best projection of the cost, and the final bill reflects the actual shipment and services. It suits jobs where the volume is uncertain, such as a customer who is still deciding what to sell before the move.

On interstate moves, you cannot demand more than 110% of a non-binding estimate at delivery; the rest is billed later, 30 days after delivery. An under-estimate turns into a collections job and often a complaint. A non-binding number that lands far below the final bill can win you the booking and lose you the review.

Binding not-to-exceed

Binding not-to-exceed is an option many movers offer on long-distance moves. You cap the price at the estimate, and if the shipment comes in smaller, the customer pays the lower amount.

It is the strongest offer you can put in front of a customer comparing quotes, and the most expensive one to get wrong. Overruns come out of your margin, and savings go back to the customer. Offer it when the survey is complete and your estimator trusts the inventory.

Hourly, flat-rate and weight-based pricing

The pricing basis sets how you calculate the number. Pick it by move type.

• Hourly. The standard for local moves: crew size times hours, plus travel time, materials and surcharges. The customer carries most of the overrun risk. Your risk is a dispute about crew pace, or a customer comparing your hourly rate with a cheaper one without comparing the hours. Put an estimated number of hours on the estimate so the customer can compare totals.
• Flat rate. One price for a defined scope. It works for small local moves, labor-only jobs with a clear list and commercial moves with a written scope. The risk sits with you, so the survey and the access details have to be solid, and the estimate should list what the price excludes.
• Weight or volume. The usual basis for long-distance pricing. You estimate cubic feet or weight from the inventory, apply your line-haul rates, then add packing, accessorials and surcharges. The quality of the inventory sets the quality of the price.

Pricing basis and commitment interact. A local flat rate works like a binding price in practice, and an hourly quote works like a non-binding one. For more on rate structures, read how moving companies price jobs.

In-home, virtual and phone or online estimates

• In-home estimate. The most complete picture: your estimator opens closets, looks at the stairwell and meets the customer. It costs drive time and a scheduled slot, and the lead can book with another company while waiting for yours.
• Virtual estimate. The customer films the home on a live call, records a video or completes a guided virtual survey. Your estimator reviews the footage from the office and can price the job the same day. Coverage depends on how well the customer films, so follow up on gaps. Our explainer on what a virtual estimate is covers the formats.
• Phone or online form. The fastest route to a number and the least reliable. It fits a ballpark for an hourly local move or a small labor-only job. Keep it away from binding and flat-rate prices on anything larger than an apartment.

Estimate types compared

Which estimate to offer for which job

Use these as starting points for your own policy:

• Studio or one-bedroom, local. Hourly with a minimum, priced from a phone call or a quick video. A flat rate works if the customer sends a complete video.
• Three-bedroom house, local. Hourly with an estimated number of hours from a virtual survey. Offer a flat rate only if the footage covers the garage, attic and basement.
• Three-bedroom house, long distance. Binding or binding not-to-exceed, from a full in-home or virtual survey. The customer is budgeting a large move and will compare firm numbers.
• Customer still deciding what goes. Non-binding now, with a re-quote once they decide. Put the date for the final inventory on the estimate.
• Office or commercial move. A flat rate for a written scope with the exclusions spelled out, usually after a site visit.
• Labor-only loading or unloading. Hourly with a minimum.

Where each type costs you money

Each estimate type has a typical failure. Know yours and build a control for it:

• Binding and not-to-exceed: the forgotten garage, the second storage unit, the attic nobody filmed. Control: require a complete survey and a customer-confirmed inventory before you issue a firm price.
• Non-binding: overruns you cannot collect at the door, plus the complaints that follow. Control: estimate honestly, and on interstate moves explain the delivery cap to the customer before the move.
• Hourly: disputes over crew pace and slow starts. Control: record start and stop times and take before-and-after photos on the job.
• Flat rate: access surprises such as a long carry or a missing elevator reservation. Control: an access checklist for both addresses on each flat-rate estimate.
• All types: estimators pricing the same job differently. Control: one rate sheet, one set of surcharges and a written policy on which type to offer.

Then close the loop. After each job, compare estimated hours or volume with the actual numbers. You will spot patterns: an estimator who under-counts boxes, or a neighborhood with long carries your team keeps missing.

FMCSA basics for interstate estimates

• Estimates for interstate household-goods moves must be in writing.
• A binding estimate fixes the price for the goods and services listed on it.
• Under a non-binding estimate, you cannot demand more than 110% of the estimate at delivery. The rest is billed later, 30 days after delivery.
• Binding not-to-exceed is an option many movers offer on interstate moves.
• The regulations live in 49 CFR Part 375. Confirm the current survey and written-estimate requirements there before you change how you survey interstate shipments, including any shift to video.

Intrastate moves follow state rules, and those vary by state. Check with your state regulator before you borrow interstate terms for local estimates. Carry the estimate type and the inventory onto the move paperwork as well; our guide to the moving company Bill of Lading and DOT rules covers that side.

How Virtual Estimate handles moving estimates

• One calculator for each job type. Virtual Estimate's estimate software handles local, long-distance, flat-rate and commercial moves, with your rates and surcharges built in.
• Priced from the inventory. The estimate auto-prices from the inventory, whether your estimator built it on site or the customer sent it through a virtual survey or AI video estimation.
• Branded PDF. Estimates go out as a branded PDF with your company's name on it.
• Straight into the Bill of Lading. The inventory flows into the DOT-compliant electronic Bill of Lading with no re-entry, and the customer e-signs it on any screen.
• Estimated vs. actual. Reporting and analytics show estimated vs. actual on every job, tied to payroll, so you can see where your estimates miss.

To run your own rates through one calculator, look at Virtual Estimate's moving estimate software or book a demo.