AUSTIN, Texas, Sept. 11, 2019 /PRNewswire/ -- Modernize,
the leader in home improvement contractor lead generation services,
has released its latest homeowner sentiment report, which
summarizes research from thousands of U.S. households that are
considering window, roofing, solar, or heating and air conditioning
projects.
Modernize issues summaries of its ongoing study on a quarterly
basis, helping contractors better serve their market by gaining a
quantitative understanding of how homeowners research and evaluate
home improvement projects. This new wave of the study covers how
homeowners budget for their improvement projects, how they find and
select their preferred contractor, and how they plan to pay for
those projects.
KEY FINDING – CUSTOMERS NEED HELP BUDGETING
Modernize
discovered there was a reduction in the proportion of homeowners
considering home improvement projects without having a planned
budget. In the first quarter of 2019, 86 percent of homeowners
stated that they hadn't had a budget before considering a project.
In Q2 that number declined to 75 percent. In either case this is
relevant to contractors because while many homeowners start their
process without having created an advance budget, 79 percent of
respondents stated that price was either very important or somewhat
important to their choice of contractor. Furthermore, when a
homeowner had to pause or cancel a project, 49 percent said it was
because the project was too expensive.
While most homeowners have not prepared a budget in advance,
they often start by doing their own research. 53 percent of
homeowners stated they spent one to five hours researching before
getting in touch with contractors and another 10 percent had
dedicated more than 10 hours in such research.
"The fact that price-sensitive homeowners start considering home
improvement projects without a defined budget creates opportunity
for market-savvy contractors by fostering a conversation around
realistic project cost and making a customer feel informed and
comfortable," said Jason Polka, CEO
of Modernize. "Winning against the competition can come down
to how clearly and helpfully that information is conveyed."
When it comes to the homeowners who actually establish a budget,
41 percent rely on inputs from family and friends, and 32 percent
turn to online tools and calculators such which Modernize
provides.
KEY FINDING—CUSTOMERS LOOK AT ONLINE RATINGS WHEN SELECTING A
CONTRACTOR
After price, when considering contractors, 26
percent of homeowners said online ratings and reviews were
important, followed by trade expertise at 19 percent. 59 percent of
homeowners plan to compare three or more quotes ahead of selecting
a contractor.
"As homeowners consider local contractors, they are increasingly
turning to websites like the Better Business Bureau, Yelp, and even
social media to look into a contractor's quality of work," said
Polka. "That's why part of the Modernize service is to collect
contractor reviews, and share those with other prospecting
homeowners."
KEY FINDING – CUSTOMERS SHARE HOW CONTRACTORS COULD LOSE
BUSINESS
The latest homeowner sentiment report also touches
on ill-advised practices where contractors run the risk of losing
business. The top three reasons why a customer would not want to
work with a contractor included: unclear or confusing bid (24
percent), lack of communication (23 percent), and perceived lack of
expertise (19 percent).
The research can be accessed online at
modernize.com/contractor-resources. The next wave of the
study is expected to be released in Q4.
About Modernize
Headquartered in Austin, Texas, Modernize is the largest
privately-owned lead generation company in the US. For over 14
years, Modernize has been a leader in the home improvement
industry, connecting homeowners with contractors within
energy-efficient trades such as solar, windows, HVAC, and roofing.
Facilitating over 1.5 million completed home improvement projects
each year, Modernize is the market leader in residential lead
generation.
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SOURCE Modernize