This will be unique to each individual. I'd liken it to finding a spouse. You really need to trust your gut when you're meeting folks. You need to like this person... they're going to be very involved in your life & home for months. Do you prefer a warm-fuzzy person to be gentle with you during the frustrating moments of your project? Or do you prefer a no-nonsense person that will give it to you straight. Remember that your interactions with the person in the beginning are a good indicator of how they will run your project. Good communication and organization are key.
If you're going for the contractor that has the best reputation in town, remember that there will be costs associated with them and it's usually for a good reason. They most likely have the best subs, more accurate bids, and run their projects on promised timelines. Also be prepared to be patient. They probably won't be able to start your project as soon as you'd like.
If the price is your main driver, be prepared for for the costs associated with this contractor. There is potential for additional expenses to come up throughout the project, longer timelines than promised, and less desirable subs. Know thy self... if that's a chance you're willing to take, you might be able to save money.
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