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ADU answers
ModeledCostReviewed 2026-04-24

Why ADU builder estimates are often wrong

Why cheap-looking ADU estimates can miss the real San Jose cost drivers: site work, utilities, permits, exclusions, and unresolved assumptions.

Direct answer

The short version

Modeled

ADU estimates are often wrong because they answer a smaller question than the homeowner is asking. A builder price may describe a structure, while the real project also includes site work, utilities, design, fees, corrections, and unknowns.

San Jose scope

Where this applies

Verified

This page is about San Jose homeowner decision risk. It does not accuse any builder and does not quote a universal San Jose price.

ADUOS checks

What we check first

  • Whether the estimate includes site work and utilitiesModeled
  • Whether permit and fee categories are consideredVerified
  • Whether the path fits the parcelModeled
  • Which exclusions could change the budgetNeeds review
  • Whether the estimate should be treated as Modeled or Needs reviewModeled

What could change this

The answer can move

  • Scope exclusionsNeeds review
  • Utility upgrade requirementsNeeds review
  • Plan-check commentsNeeds review
  • Unknown drainage, foundation, or access constraintsNeeds review

Source notes

Why the label matters

Modeled

Official sources can support process and fee categories. Builder estimate quality remains case-specific and should be checked against scope.

FAQ

Common follow-ups

Is the lowest ADU estimate the best estimate?
Modeled

Not necessarily. The lowest number may exclude work that the homeowner still has to pay for later.

What should I ask a builder?
Needs review

Ask what is excluded, what utility work is assumed, how permit corrections are handled, and what site conditions could change the price.