Modernize study shows contractors should increase transparency of solar financing options
Modernize, provider of home improvement contractor lead generation services, has released its latest Modernize Homeowner Index, a quarterly research study that measures sentiment among thousands of U.S. homeowners currently considering windows, roofing, solar or heating and air conditioning projects. Modernize issues quarterly summaries of the ongoing study, helping contractors better serve the home improvement market through quantitative analysis of how homeowners are researching and evaluating their projects. This particular study covers how homeowners educate themselves about the improvement projects they are interested in, how they find and choose what contractors to work with, and how they think about paying for those projects.
The latest wave of the study found that 51% of homeowners utilize online articles as the primary source for research on their home improvement project. And they spend substantial time in their research, with 35% of homeowners spending between one and five hours investigating their project before submitting a lead and a full 28% spending more than 10 hours researching on their own. Then, when they’re selecting a contractor, homeowners shun bad communication skills, with 23% listing that as a factor that would prevent hiring a contractor; by contrast, only 6% listed “Ego” as a factor that would prevent a hiring.
“The continued prevalence of homeowners’ online research for information and guidance on their home improvement projects points to the importance for contractors to communicate and make connections online,” said Jason Polka, CEO of Modernize.
When it comes to kicking off their home improvement project, many homeowners are nervous about their understanding of costs and want help. 86% of homeowners surveyed had not created a budget for their project, and of homeowners who paused their project, 58% did so because it was too expensive. Across all trades 42% of homeowners would like to finance up to half of their project, and 19% would like to finance the entire project.
“The homeowner’s lack of knowledge about costs reinforces the need for contractors to educate customers about financing so that homeowners can have more confidence,” said Polka. “Homeowners go online to get quotes and find ways to pay for their home improvement projects. Contractors should capitalize on those needs by having their websites educate and inform homeowners on the financial options.”
This issue of the study is part of an ongoing research project. Modernize is dedicated to educating home improvement contractors so they can better understand customers’ needs and preferences in order to make sound business decisions. Each quarter, Modernize surveys thousands of American homeowners interested in solar, roofing, windows and HVAC projects.
The research can be accessed online at https://modernize.com/contractor-resources/47064/homeowner-survey-index-q1-2019. The next wave of the study is expected to be released in May.
News item from Modernize