ArcSite surveyed over 1,000 homeowners about their past experiences with contractors. The results are compiled in the free 2022 Homeowner Survey Report.
ArcSite partnered with the market research firm ResearchScape to survey over 1,000 homeowners in late 2021. Homeowners were asked questions about their research, saving, and spending habits, as well as their previous experiences with contractors and what they would like to see improve.
We asked homeowners what specific things they look for when researching contractors. Do they rely on reviews more than a neighbor's referral? Are they looking for examples of your past work to see if it is similar to the work they are looking to have done? The answers suggest that homeowners value all of these factors, but rely especially on referrals and reviews.
How much time does it take the average homeowner to research contractors? Our data suggests that most people spend an hour or two researching a contractor before requesting an estimate. Depending on the scope of work and budget, research time could
vary significantly. In fact, results show that those who budget over $10,000 a year on repairs and renovations spend at least 3-5 hours researching contractors.
Cost & Budgeting
The amount that people budget annually for home repairs and renovations varies widely. Our data shows that 42% of homeowners budget less than $1,000 - with 16% saying they budget nothing.
A large number of those surveyed said they save $1,000 - $5,000 for repairs each year. When compared with income, unsurprisingly, people with a higher income tend to budget more for repairs.
When asked how they would pay for a significant repair or renovation bill, the majority (37%) of homeowners said they put it on a credit card.
The 2022 Homeowner Survey Report shows that nearly all homeowners solicit more than one bid for a job. 95% of people said they get more than one bid, and a majority often get three or more bids. This means that your contracting business always has competition, so standing out from a stack of quotes is key to winning more jobs.
Timing also plays a role in how homeowners decide who to hire. 28% say they expect a quote either on the spot or on the same day of the contractor's visit. The faster you can deliver a quote, the more likely you are to win the job.
When asked what the most important factors are in hiring a contractor the top answers include:
- Word of mouth and referrals
- Professionalism and presentation
Our research shows that the modern homeowner is very comfortable with technology. Most people use tech in nearly every other aspect of their lives, so it is no wonder that they prefer to interact with contractors who use tech to deliver quotes and communicate with their customers.
This chart breaks down the different ways in which homeowners would prefer to receive a quote from a contractor. An overwhelming majority prefer to have the quote emailed. About a quarter of respondents are fine with a handwritten quote, but that means that 75% of people prefer to receive a digital quote.
Customers now expect detailed quotes that are
printed, emailed, or texted. If they can easily access the quote on their smartphone or tablet, they may be able to give your quote more consideration than one that is only available on a piece of paper. The data suggests that there is no downside to offering homeowners a digital quote, only an opportunity to impress your clients.
The Homeowner Survey Report reveals that nearly half of all respondents have had a negative experience with a contractor in the past. 42% of people may have a harder time trusting your business because of their previous experiences with contractors. This makes the "first impression" that much more important to win them over and show that your business is professional, detailed, and trustworthy.
Thinking of their past positive experience with contractors, here are the top five factors that stood out to homeowners:
1. Quality of work
5. Timing of completion
It is clear based on the data that not all contractors deliver on these basic principles. Make sure you and your workers are doing everything you can to overcome the preconceptions and past experiences that some homeowners have that could be hurting your business.
Download the free Homeowner Survey Report
The free 2022 Homeowner Survey Report for Residential Contractors will help you provide the best possible service to your customers, by understanding their needs and delivering a successful project. Download the free report today and see how your business can innovate to succeed this year.