A few comments.
1. make absolutely sure that you have control of the web site. There are some very unethical web designers out there who once they have control of your URL and if you decide to change web designers, it can be very hard and expensive to get control of your web site back. THIS IS CRITICAL. THIS IS CRITICAL. (It was worth repeating). Any web guy who tells you otherwise, or tries to talk you into letting him register it in his name should be run away from as fast as possible. Do not even consider this arrangement.
2. most web designers are hacks. just a fact. and not even very good hacks at that.
3. take a look at web sites a prospective web guy has done. excessive use of distracting color, animation, and other unnecessary stuff is a good reason to go elsewhere.
4. chances are most of the cheaper stuff is going to be template based. nothing really wrong with that, and it may indeed make the most sense since it is likely to be a proven template. hacks will give you a song and dance about how they supply a custom solution, but almost all of them start with templates as well.
5. you absolutely must insist that your web designer supply you a backup copy of your web site. for small web sites that do not use php or database techniques, and are all straight HTML, you can back it up yourself from the Internet. most websites these days are database driven.
6. Local guys have the potential advantage of face to face if needed.
7. Where you physically host your web site is an important decision. A local guy with a hosting facility in an unused closet (this is very common) is a monumentally bad idea.