I think the first step is another electrical contractor and a second opinion. Did you have the house inspected before buying? Sometimes the seller gets the shaft, but I think everything in the house, wiring, plumbing, furnace, etc. at least had to meet code when it was installed. The seller can be forced to upgrade at their expense. Remodeling is tricky. Do very much and you are required to bring things up to current codes. Did the electrician mention arc fault breakers for the bedroom and GFCI in the kitchen, bath, basement, outside, and garage?
I hope the $5 for 2 prong outlets includes instalation. GFCI outlets labeled ‘‘No equipment ground’’ should be code compliant.
I doubt the difference between a 100 amp or 200 amp box is that much. However, you can’t have a 200 amp main breaker unless your incoming service wiring is good for it. Your breaker protects the incoming wire as well as your house. This is a matter for the power company. In some cases, they don’t have the capacity to upgrade to 200 amps. I have 100 amp service that is adequate for our needs, but it only has 20 slots. Even with an 8 slot sub panel, we could use a few more circuits. I have one with 16 outlets on it.
My son bought a house about the same age a few years ago. In negociating the sale, he offer to go halves on repairing the chimney. The seller refused. The building inspector ordered the seller to repair it at his expense.
Yes, the type of wiring is important. My son’s house was already upgraded to a breaker box, 100 amps I think. It is mostly wired with BX as I would expect your house. In most places, the steel sheath can serve as the ground. Your 3 prong outlets may already be grounded. My son’s house still needs a lot of work. Every time his father in law or I visit, we do a little work. My son had picked up a plastic box for a project in the bath. I don’t know if code allows grounding through BX with a plastic box. I picked up a metal box and went on from it with 12-2 with ground, tying all the grounds to the box.
Note, code is what the local building inspector says it is. Winning arguments with them can be done, but best not. Best not to take shortcuts one inspector says is OK either.
Oh, I agree on getting a book and learning as much as you can.