Each year, Arcsite conducts a survey of over 10,000 homeowners to determine their habits in searching for a contractor to perform home improvements or renovations. While this survey is designed to help contractors know what homeowners are looking for, it is also very helpful for homeowners to know best practices in hiring a contractor.
Here is a summary of their key discoveries.
Researching Contractors
Homeowners rely on referrals, reviews, and past work examples when researching a contractor.
Referrals rank as the #1 source for finding a reliable contractor. Friends and family and online reviews are almost equally important.
According to Terrakeet.com, consumers are 63% more likely to trust brands with online reviews compared to brands with no reviews. A lack of reviews makes buyers feel increased risk, which makes them hesitant to go further in the hiring process.
Budget Affects Research Time
On average, homeowners spend only an hour or two researching a contractor before requesting an
estimate. The scope of work and budget, however, can affect the amount of time used to find the right contractor. The larger the project, the longer the research time.
Those who budget over $10,000 a year on repairs and renovations spend at least 3-5 hours researching contractors.
Annual Repair Budgets Are Widely Varied
Many homeowners save nothing for repairs and renovations, while others put away thousands. Research shows that less 42% of homeowners have less than $1000 budgeted each year for repairs, though the largest percentage of those surveyed save between $1000 and $4,999.
Payment Preferences
Cash (32%) and credit (37%) are how homeowners prefer to pay for large home repair bills. In fact, 61% of homeowners use some form of credit (cards, financing, and lines of credit).
How Many Quotes Do Homeowners Get
The larger the job, the more bids a homeowner will seek out.
After Price, Professionalism Matters Most
How a contractor presents him/herself during the sales process is an important factor in the selection process. Here's how the most important factors that go in to selecting a contractor rank:
Rank | Factor For Hiring A Contractor |
1 | Price |
2 | Word of mouth / Referrals |
3 | Professionalism / Presentation |
4 | References |
5 | Trust / Gut Feeling |
6 | Online Reviews |
7 | Time estimated to complete the project |
8 | Brands and Materials |
9 | Portfolio |
10 | Website |
Presentation & Communication
These aren't the only reasons a contractor may be accepted or rejected. Here's how the homeowner's surveyed consider presentation and communication in the bidding process:
Factor | Where Homeowners Rank Factor As A Reason To Decline The Bid |
Poor Attitude | 63% |
Not professional | 61% |
Lack of warranty | 50% |
Lack of experience | 49% |
Poor communication | 49% |
Confusing bid | 45% |
Tardiness | 44% |
Other | 5% |
Where Homeowners Go To Research Contractors
Online Source | Percent of Homeowners Who Go Here |
Search Engine (Google, Bing, etc.) | 65% |
Home Advisor | 33% |
Angi's List | 28% |
BBB | 26% |
26% | |
Business Website | 25% |
Yelp | 22% |
Nextdoor | 19% |
Other | 3% |
Electronic Communications
Pen and paper are quickly becoming obsolete when it comes to getting quotes from contractors. Homeowners are now expecting detailed quotes that are printed, emailed, or texted. Only 25% of those surveyed prefer a handwritten quote.
The higher the budget for a project, the more inclined a homeowner is to want a digital proposal. For projects above $20,000, 89% of those surveyed want a digital proposal delivered by email, text, or typed and mailed. Handwritten proposals no longer make the grade.
Here's how homeowners prefer proposals to be delivered:
Delivery Format | Favorite Percentage |
42% | |
25% | Handwritten |
16% | Typed / Printed |
10% | On a smartphone |
4% | Text message |
3% | On a tablet |
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Sources: Forbes, Arcsite.com, Terrakeet