How can first time buyers avoid getting taken advantage of by contractors?

Answer 1

If you are dealing with a contractor, chances are you are building a new house. The contractor should have to pull permits for most of the work being done - structural, electrical, Plumbing, roofing, etc. Make sure you see the permits. Make sure the work has been improved by the inspector before construction continues. Go to the job site often. Question anything that doesn't look like what your plans indicated. You have to do a lot of homework. Research the different aspects of the construction. Make sure you get a detailed bid on what is being done and check to see that it is. A bid means that he is going to do what he says for the amount he states. Don't accept a proposal or estimate. The contractor can estimate a price that sounds good then keep coming back with reasons it will cost you more. Don't give the contractor more than a third of the money (which he should use to buy materials. )Don't sign off and pay in full until project completed to your satisfaction and has been inspected properly. And check out your contractor before you even start. Get references, check the BBB and other resources for complaints or legal actions against him.
Take responsibility for the information you give him and be sure you know what you want and what it will cost. Every change you make to the original plan adds to the cost and that is your fault. If you don't think you can handle all of this, consider buying an existing home to start.