– Many self-publishers need less specialization. I sought an editor — mostly a copy editor, but also this is the only person who could tell me if I ramble in a particular chapter. I couldn’t afford a full dev edit, but I think I’m typical in wanting an editor who will tell me what my friends wouldn’t, and maybe switch hats for small sections where it’s needed.

That said, I don’t recommend going to publication, particularly if your book is intended as a revenue-generating venture or as a vehicle of professional promotion, without making sure that someone with an eye for detail has gone through the entire manuscript and ruthlessly noted every typo, every spelling error, every misplaced comma, and every ambiguous sentence.
About 25% of my (fiction) editing work is direct with authors, and the rest is split between two publishers. It my be of interest to note that these rates are close to what publishers pay their editors. That is to say, if you, as an author, were to traditionally publish your book, you would be paying this amount via royalties. Creating a professional product via self-publishing is not cheap, the costs (and income!) just shift from the publisher to the author.
As one person who “woke up and decided since I’m published and an English major, I should be an editor,” I can see your point of being only one type of editor. I’m not a good copyeditor at all and don’t offer my services for that situation. It’s funny that you would say a traditionally published type editor would be better than the independently published editor. I found this to be totally untrue since I have worked with both. My traditional editors from St. Martins Press and Bantam books working a total of 35 years in the industry, was the worst editor of all. My independently published editor/book coach, is the most knowledgeable. So there is a bit of a disparage. It’s not an absolute science, editing.
In addition to the individual editors listed above, the Reedsy marketplace is full of vetted professional editors for every editing level and genre. They screen their editors and only allow the best of the best to be listed on their website. I'm a BIG fan of them because they have made the process easy for me to find the best book editors, book cover designers, and even writers to help me with my projects.  Talk about awesome!

It’s difficult to answer this question without first addressing what an editor actually does. Editors can review the content of your writing (characterization, pacing, plot, etc.), which is often referred to as content editing; the form of your writing (the grammar, the punctuation, etc.), which is often referred to as copyediting; or both. (By the way, proofreading is indispensable, but it’s the final step of checking for typos and other glitches once the book is ready for print—any writer who thinks that proofreading is editing is in grave danger of getting ripped off.)

Amazing post, Dave, and definitely an important topic. My first book I used one of the larger “editorial agencies” you mentioned. The quality wasn’t bad but there was no direct contact with the editor. Just ship it to them and they ship it back. I’ve tried out several editors now and found a very good one who did a great job on my list book. Once you find a good editor, stick with him/her and build a relationship if you can. Thanks for the list provided and this editors test is a great addition.
Great advice, especially the painting analogy (clever!). I also enjoy your YouTube videos, which I found out about through Publishing Perspectives ((nice!). http://publishingperspectives.com/2015/08/ready-for-your-close-up-what-youtube-can-do-for-writers/ I agree that most developmental editors are more like therapists than surgeons, but there are book doctors out there who will essentially rewrite your manuscript (they’re one step away from ghostwriters, I feel). Also, I don’t actually offer sample edits, but this has nothing to do with pedigree. It’s more that I’d rather not mark-up a manuscript unless I’ve read a good part of it (at least 50 pages). I believe that most copyeditors offer sample edits,… Read more »
Every author must decide what is important to him or her in an editor, but in these days of electronic communication, honestly I do not think it is important to seek a local editor unless your book is specifically related to something of local interest. Even in that case, you may benefit from the perspective of someone who does not have all the local knowledge it can be easy to presume, so that you can prepare your book for a wider audience.