Before embarking on any home improvement projects, it’s important to get an idea of your estimated home improvement costs. One of the best ways to do so is to get a number of contractor cost estimates. Home improvement estimates not only give you an idea of how much your project will cost, but also offer information about potential home improvement contractors.

How Many Contractor Cost Estimates?

To get an accurate view of home improvement costs, it’s important to ask for several contractor cost estimates so you can compare prices. If you only get one or two estimates, you might not notice if the estimates are too high, or, for that matter, suspiciously low.

At the very least, a homeowner should gather four or five home improvement estimates from different home improvement contractors. If one contractor cost estimates a much higher cost than the others, he or she may be overcharging. If, however, a home improvement estimate is much lower than other estimates, it may be a sign the contractor either is not including all costs or provides subpar work.

What Should be Included in Home Improvement Estimates?

Contractor cost estimates should, ideally, be broken down to give homeowners an idea of material costs, labor, and other expenses. A home improvement estimate that provides a single figure for the entire project really doesn’t tell you much. Estimates that are itemized are easy to compare with other contractor cost estimates. Don’t be afraid to ask a contractor to break down estimated expenses.

A home improvement estimate should include such costs as:

• Building permit fees
• Clean-up costs
• Labor
• Materials
• Taxes.

“Goldilocks” and Home Improvement Costs

Homeowners reviewing home improvement estimates should bear the story of Goldilocks in mind. Contractor cost estimates that are much higher or lower than the average should be discarded unless the contractor offers a compelling reason why their estimate is so different from other proposals.

It’s possible that a low-ball estimate is accurate, just as it’s possible that a high home improvement estimate reflects the quality of a contractor’s work. In general, however, the estimates to look at seriously are the middle-of-the-road proposals: not to expensive, not too cheap, but just right.

Finally, remember that an estimate is just that: an approximation of home improvement costs. The actual cost of home improvement projects may be higher or lower than contractor cost estimates. In such cases, it’s the working of the home improvement contract that counts, not the estimate.