Choosing an editor is one of the most important decisions you will make for your book. Not only is hiring a professional set of eyes a serious investment of money, but it also represents a significant investment in trust. You are handing your book-baby over to a stranger, after all, and you need to know that it will be treated with respect and properly cared for. You also need to know that you will be working with someone who communicates well and whose opinions you can trust. All of that can be difficult to ascertain, especially when you may never actually meet your editor in person.
Although there is a lot of good advice about choosing an editor floating around the internet, there is one common tip that always makes me cringe. It goes something like: "If you want to know whether an editor is good, check out the books they've already edited." The logic here is pretty straightforward and, on the surface, makes sense. However, it also ignores the crucial fact that most contract editors, especially editors of independent books, have no control over the final publication. Many, in fact, will have only been hired for a single revision, which is not enough for a publication-ready product. Just looking at the finished book, therefore, will not give you a clear picture of what the editor did for that manuscript or what he or she can do for you. Instead, here is what I would recommend looking for when you're looking for an editor.
1. Editing sample
Some editors will have a sample of their work to share with perspective clients. This is by far the best way to get a sense of whether they would be a good fit for your project. Be aware, however, that there are valid reasons to not have such examples on hand. The most obvious of these is the fact that, for editors, sharing a sample of their work necessarily requires showing their client's work at a vulnerable, pre-publication stage. Of course, most people don't want their writing distributed in this way, and an ethical editor won't pass along a client's work without permission. [This is also why, if you are able to obtain an editing sample based on a third-party's writing, you should dispose of it after looking it over and be careful not to share it with anyone else.]
If an editor doesn't have a sample on-hand, see if they would be willing to edit a couple pages of your work. They may charge a small fee for this, but it is better to pay an extra $25 to be sure you're getting the right fit than to spend hundreds of dollars and weeks of time on the wrong one.
2. Word-of-mouth
Ask other writers, particularly writers whose work is comparable to yours, who they would recommend. If those writers are close friends, they might even let you see the drafts their editors worked on. Either way, a solid recommendation from someone you trust is one of the best ways to narrow down your search.
3. Research and communication
Some editors may outline what clients can expect from them on their websites, so be sure to look carefully at whatever information is already readily available to you. Once you've done that, don't be afraid to ask follow-up questions. Also, be clear with prospective editors about your needs, and be honest with them about the state of your project. For instance, if they ask for sample pages before signing on, be sure to send them pages that are indicative of your writing. If you polish your sample but leave the rest of the ms in shambles, the editor will feel misled and may withdraw from your contract altogether. However, if you are honest from the outset, you will have a much better chance of hiring someone who fully understands and wants to take on your project.