From DIY to Pro: The Customer Mindset Revolution in Home Improvement
Home improvement contractors across the U.S. are experiencing a shift in homeowner behavior: the once-popular DIY mindset is giving way to a "do-it-for-me" attitude. This transformation stems from rising project complexity, changing lifestyles, and greater access to flexible payment options. For contractors, it’s a chance to grow by offering financing solutions that align with modern customer expectations—especially for those looking to understand how to make financing part of their sales strategy.
The Changing Homeowner Mindset
During the pandemic, homeowners embraced DIY renovations with vigor. But in 2025, major projects are swinging back toward professionals. Simple cosmetic updates remain in the DIY camp, but anything involving structural changes, plumbing, or electrical work is firmly in the domain of licensed contractors. The risk and complexity have outpaced the average DIYer’s comfort zone.
Why the shift? First, mistakes are costly. With material prices still elevated, homeowners are unwilling to gamble on a failed DIY job. Second, time is short. As people return to full work schedules and family life, they no longer have weeks to commit to learning and executing major renovations. Hiring a pro offers efficiency and peace of mind.
Retail data supports the shift: in early 2025, Pro customers outspent DIYers at stores like Home Depot. DIYers still purchase tools and supplies for smaller tasks, but larger investments are increasingly routed through contractors. The homeowner mindset has changed from "let me try it myself" to "let me hire someone who'll do it right."
Why Homeowners Are Choosing Professionals
Three key drivers are powering this professionalization trend: rising demand, increasing complexity, and accessible financing.
1. High Demand & Lifestyle Changes
With homeowners staying put due to high mortgage rates, the focus has shifted to improving current homes rather than moving. This means projects like finishing basements, adding home offices, or modernizing kitchens. People with busy lives now prefer to pay someone to manage the job rather than carve out personal time for it. Contractors with good reputations are booked out weeks or months in advance.
2. Project Complexity
Home renovation has become more technical. From smart home integrations to code-compliant electrical work, these aren't jobs for hobbyists. Homeowners increasingly recognize that hiring a professional is the best route for quality, safety, and resale value. Even diehard DIYers admit that some projects exceed their skills or available time.
3. The Rise of Financing Options
This is the real game-changer. A few years ago, customers often had to come up with a lump sum before a project could begin. Now, flexible financing options make it possible to break down a $20,000 kitchen remodel into monthly payments. That removes friction from the sales process and helps contractors close larger deals.
Financing Trends That Matter
You might be asking yourself how to provide financing for my customers without making things complicated. Don’t worry, let’s take a look at the most popular financing options homeowners are using today.
Personal Loans
Personal loans remain a popular option due to their speed and simplicity. Borrowers can receive funds based on credit score alone, without needing to pledge home equity. Although interest rates hovered in the 10-13% range earlier this year, some lenders began easing rates in mid-2025. This made personal loans a viable choice for medium-sized projects. Contractors benefit when customers show up with funds in hand or can direct them to trusted lending platforms.
Home Equity Loans and HELOCs
Americans now hold trillions in home equity, and they're using it. Homeowners reluctant to give up their low mortgage rates are investing in upgrades instead of moving. HELOCs (Home Equity Lines of Credit) have surged in popularity thanks to rate cuts and competitive offers. With flexible repayment and favorable interest rates, equity-backed financing is enabling larger jobs like additions, full remodels, or outdoor living upgrades (ex: embracing the backyard trend). Contractors who understand how to help homeowners unlock this value are better positioned to close deals.
Point-of-Sale Financing
The most impactful development is point-of-sale (POS) financing: offering financing directly through the contractor at the time of sale. Whether through fintech platforms or lending partnerships, POS financing transforms the conversation. Instead of quoting a $25,000 lump sum, a contractor can say, "This would be about $280/month."
This approach aligns perfectly with Millennial and Gen Z buying preferences (read more here). Studies show that offering financing can boost close rates by up to 20% and increase project size by as much as 50%. It's a powerful way to turn a "maybe later" into a "yes today."
How to Offer Financing to My Customers: A Practical Guide
For contractors wondering how do I start offering financing to my customers, the process is simpler than you might think. Here’s how to get started:
1. Partner with a Third-Party Provider
Platforms like FinMkt or GreenSky are ideal for contractors wondering how to offer third party financing for my customers without adding operational complexity. These solutions handle the loan process from application to disbursement, allowing you to focus on the project while your customers get flexible payment options. Once approved, you get paid quickly.
2. Integrate Financing into Every Proposal
Make financing part of your normal pitch. Don’t wait for customers to ask. Include payment plan examples in quotes: "Total: $14,000, or $190/month with financing." This removes the sticker shock and makes high-value projects feel accessible.
3. Use Promotional Offers
Ask your financing partner about promotional plans, such as 0% interest for 12 months. These can sway price-sensitive buyers and encourage scope upgrades.
4. Train Your Team
Everyone who interacts with customers should be able to explain financing basics. Role-play conversations to build confidence. If a customer hesitates on price, respond with: "We offer monthly payment options if that's helpful."
5. Market Your Financing Option
Make it visible. Put "Financing Available" on your website, vehicle wraps, and social media. Many homeowners assume they can’t afford professional help until they see payment plans advertised.
6. Lean on Your Financing Partner
You’re not in this alone. A strong financing partner provides the training and sales support you need to confidently offer financing. FinMkt equips contractors with the tools and guidance to present payment options seamlessly and close more deals.
7. Communicate Benefits to the Customer
Frame financing as empowerment. It’s not about pushing debt – it’s about helping them get the results they want now, without waiting years to save. Reassure customers that applying is quick and secure, often involving a soft credit pull with no obligation to accept.
Conclusion: Adapt and Win
The customer mindset has evolved—today’s homeowners expect not only expert craftsmanship but also flexible ways to manage the cost. Contractors who offer clear, accessible payment solutions are in a strong position to win more business. Whether you’re a small business owner looking to introduce financing for the first time or exploring third-party options to support larger projects, being able to guide customers through their payment choices is becoming a core part of the sales process.
Offering customer financing for small business doesn’t have to be complicated. With easy-to-use platforms that support third-party financing, even small contractors can offer flexible payment options and compete with big-box providers. You become more than just a contractor—you become a trusted partner in helping clients bring their vision to life.
The takeaway? When customers go from DIY to Pro, they’re looking for someone who can deliver results and help them afford it. If you can strike that balance, you’ll not only win more business – you’ll build lasting success.
