Understand the Benefits and Drawbacks of Home Contractor Referral Platforms Analyze the effectiveness of different platforms in connecting homeowners with reliable contractors.
When searching for a home remodeling or design-build contractor, there are several options at your disposal - some better than others. Having the professional opinion of a true expert can make all the difference. It’s important to keep in mind that, one way or another, referral services get paid for providing leads to contractors. Sometimes the cost is per month by geographic region, but it can also be by the individual lead or a percentage of the overall contract.
Either way, as the consumer, you’re likely to be paying for those fees in the form of marked up project costs. Before you consider using a referral service, it’s helpful to know a bit more about the good and bad of the more popular contractor referral platforms.
Angi - Angi, HomeAdvisor and 1-800 contractors are under the same umbrella.
Formerly Angie’s List, This platform is unique in that consumers pay to be members in order to have access to their network of contractors. For small home improvement projects that require only one trade, Angi MAY be ok. When it comes to a major remodeling project where design and permitting is involved, Angi is a mixed bag of contractors and generally not a good solution because their reviews and grading system is unreliable. Angi is not where to go.
HomeAdvisor - Angi, HomeAdvisor and 1-800 contractors are under the same umbrella.
HomeAdvisor is even more dangerous than Angi because they do not discriminate among contractors and remodeling professionals. As long as a contractor is willing to pay for leads, Home Advisor will accept them. Even worse, HomeAdvisor uses misleading online strategies to divert homeowners to their own contractor network. Once again, for major remodeling projects where design - build is the best approach, Home Advisor is not where to go.
Pro Referral - by Home Depot
Expert Installers Recommended by Home Depot for Superior Quality Workmanship. These installers have been vetted by Home Depot for their superior quality workmanship. https://proreferral.homedepot.com/public-profile/759512
Houzz - paid service
But for all intents and purposes, if you are reading this and have never heard of the home design platform Houzz, it is essentially the “Pinterest of home design.” Homeowners and renters alike can browse through endless home design content that aims to educate searchers on the latest and greatest trends in the industry.
- Architecture
- General Contractors
- Design/Build Firms
- Home Builders
- Interior Designers & Decorators
- Kitchen & Bathroom Designers
- Landscape Architects
- Landscape Contractors
- Pool Specialists
- Handymen
- Garage Door Specialists
- Etc.
The Houzz platform is particularly useful because searching is so efficient. Once you narrow down your location and speciality service, Houzz will rank the results by “Best Match.” Additionally, you can customize your search based on who is most popular or who has the highest reviews. Then, you can narrow down your search by reading the trusted reviews provided by a company’s actual clientele.
GuildQuality - extremely high prices for leads
GuildQuality is first and foremost a software tool used by professionals in the home building and remodeling industry. They offer a platform that allows for seamless management and collaboration of home renovation projects. What most homeowners don’t know, is that GuildQuality has a consumer-facing section of the website that allows for searching for contractors.
GuildQuality allows you to search for just about any type of professional in the home improvement industry. From general contractors, to electricians, aging in place pros, carpentry experts - the options are just about limitless.
Searchers can narrow the results by location. Once the search results appear, it is easy to toggle through the options. Each search result displays a survey of the business which rates their overall communication, professionalism, value, follow up, project management skills and more. Searchers can read from a collection of personal testimonials of each business, as well as scroll through albums of previous projects.
We find GuildQuality to be a valuable platform for vetting home improvement professionals because of its focus on actual project reviews and client testimonials.
Yelp - extremely high prices for leads
For better or worse, Yelp remains a go-to resource for people looking for word-of-mouth referrals. Whether you’re in search of a new restaurant, plumber, or legal professional, Yelp can certainly help you find what you need.
As Yelp is the most popular referral resource available today, we had to include it in our lineup of favorites. The home improvement industry is highly active on this platform, which means you can be confident there will be plenty of contractors and remodeling companies to choose from. Major downsides to Yelp, however, include rampant false reviews and an a “pay to play” business model that favors paying companies over those who may actually be better service providers.
Thumbtack
Thumbtack started out as a home services referral platform in 2008, but has since grown into a place to find and hire professionals in everything from web design to massage therapy. Thumbtack works much the same as the other referral platforms on this list: users browse through a list of providers in the service area of interest, using price and other filters to narrow their options. From there, users can chat directly with service providers to discuss their project needs before determining a schedule for their project and deciding who to hire through the platform.
Thumbtack originally was primarily a platform for small home projects that can be completed in a few days, i.e. the type of job you would hire a handyman to complete. The platform has since expanded into major remodeling and renovation both design - build and general contractors. Like other national referral lists, Thumbtack is subsidized by companies who pay for leads, so keep in mind, the fees are likely tacked on and the consumer is paying for it. Most reputable companies in home improvement would not “pay to play”, so the odds of finding quality here are highly unlikely.
BuildZoom
The homepage at buildzoom.com greets visitors with the tagline, “Find a contractor you can trust, for free.” Pretty compelling, but how does the experience stack up? For starters, the experience for homeowners using BuildZoom is a bit unique compared to the other contractor referral services we’ve covered. Users start off by completing a form that outlines their project needs, goals, budget, and preferences. From there, they are matched with their own BuildZoom project consultant whose job is to help homeowners throughout the entire process.
BuildZoom consultants help users identify and meet with a list of matched contractors, with all communication, notes, and estimates documents within BuildZoom. Users can then compare and hire the best contractor for their job.
Quick Comparison: Home Contractor Referral Services
| Referral Service | Quick Description | Expert thoughts from Dunbar's Electric |
|---|---|---|
| Angi | Good for small, single-trade home improvement projects. Unreliable reviews and contractor ranking system. |
Angi spends a lot on advertising which should raise a red flag. Maybe ok for simple one trade services, but not for large projects. overall bad choice. do a search on Better Business Bureau |
| HomeAdvisor | Less discerning than Angi when it comes to contractors allowed on the platform. Favors “pay to play,” which means less qualified contractors may be featured and recommended more often. |
See above. Angi and Home Advisor are the same company. Another red flag. overall bad choice. do a search on Better Business Bureau |
| Pro Referral (Home Depot) | Long history of referring installers and other home contractors for their products. Contractors may or may not have proper credentials, training, or expertise. Hire from this platform at your risk. |
Home Depot I would recommend. I would highly recommend them |
| Houzz | Great for generating ideas and inspiration for various home remodeling projects. Solid search features help users uncover local top-rated contractors across a variety of specialities. | A great tool to share ideas. Unfortunately it has become very sales forward and pay to play site. Companies that pay, show up at the top of results and may night be the best choice. |
| GuildQuality | Primarily software used by contractors, but also provides a consumer-facing product that allows for contractor searches by homeowners. Highlights and prioritizes contractors based on actual project reviews and client testimonials. | Guild Quality is by subscription only. Contractors who subscribe send surveys to homeowners to measure performance. What’s important to know when evaluating providers is subscribers can surpress unfavorable information. |
| Yelp | A necessary evil for nearly every local business today due to its popularity. Rampant false or skewed reviews makes Yelp a dubious platform when searching for a contractor. Use with extreme caution (and certainly not in isolation). | Yelp has their own review algorithm that is not fair and balanced. Buyer beware. Also, businesses show up based on home much they pay, not by merits. |
| Thumbtack | Clean and simple referral platform. Database of contractors and home service providers is relatively limited compared to others on this list. Ability to quickly connect with and schedule contractors is a plus. | To sum Thumbtack up, unless the business provides a credit card number, they do not show up in search results. |
| BuildZoom | Dedicated project manager is a great feature. Good platform for home owners who are fairly far along in their decision making process and have a clear idea of their project goals, budget, etc. | The good is there is a dedicated project manager. The bad is they are commission-based sales person. The ugly is consumers spend a lot of money for plans, only to find out they can’t afford the work |
Things to Prioritize When Choosing a Remodeling Contractor
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Area(s) of Expertise: Don’t select a general contractor if you have a specialized project in mind. A remodeling contractor who excels at bathroom remodels might not be a good fit if you what you’re looking for is a second story addition.
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Contractor’s Company Profile: How long has the contractor been in business? What are their customer reviews and testimonials saying? Do they appear to have a solid track record of success? Consider looking into the contractor's past projects and see if they align with your needs and expectations.
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Communication is vital for a successful home renovation. Ensure your chosen contractor is approachable and facilitates clear communication.
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Project Delivery: The method of executing a remodeling project can significantly affect the timeline, budget, communication, and client experience. Inquire about the contractor’s project delivery process.
There are not enough competent, reputable and reliable contractors around to service all the homeowners in need of remodeling, so using a referral service for major home improvements is extremely risky. The type of companies who subscribe to referral services are a mixed bag too. You can find large firms who are just looking to increase revenue as well as small firms that are unqualified. Before you consider using a referral service, do a Google search for “Angi Reviews,” “Home Advisor Reviews,” and you’ll see the many consumer complaints.
Trustworthy Home Remodeling Resources for Informed Decision-making.
Referral services are more risky for anything other than minor remodeling projects where designs and plans are not required. Those services would be small plumbing repairs, HVAC replacement, replacing fixtures in kind etc. Be aware, almost all remodeling, mechanical, electrical, and plumbing projects will require a permit.
Unlicensed individuals often found via referral services may not obtain necessary permits, jeopardizing your project and finances. Consumers should vet referrals carefully. Seek qualified home improvement professionals through word-of-mouth, reputation, and online research.
Keep in mind, successful, reputable contractors regardless of their size, thrive on satisfied clients. That alone should demonstrate the importance of viewing contract referral services with a discerning eye, and why you should always conduct your own vetting outside of these services.