It’s important to understand all the costs involved in building an Accessory Dwelling Unit (ADU) when planning your project.
At Giudice Builds, we make sure to communicate clearly from the start, especially about the budget. We manage every phase of an ADU project, from ADU design, ADU Financing, ADU Plans and permits to the final build. This means we’re deeply familiar with the costs that tend to catch homeowners off guard.
An ADU project has different phases, and each one can bring new variables that affect the overall budget. We have years of experience in this field. This allows us to spot possible problems early on. We can also give cost estimates that are based on what actually happens during construction. Our estimates aren’t based on what looks good on paper.
This article will explain how much it costs to build an ADU in Colorado Springs. It will talk about the main things that affect the price and how they change the total cost. We want to give you a realistic and honest idea of what to expect before you move forward with your plans.
| ADU Type / Expense | Estimated Cost Range | Notes |
|---|---|---|
| Detached ADU | $187,500 – $720,000 | $375–$600 per sq. ft. for 500–1,200 sq. ft. |
| Garage Conversion | $80,000 – $150,000 | Depends on size and complexity |
| Design Fees | Around $12,000 | Architectural/design work |
| Permitting Fees | $2 – $14 per sq. ft. | Based on local PPRBD rules |
| Site Preparation | Around $25,000 | Grading, excavation, and prep work |
| Utility Connections | $30,000 – $50,000+ | Water, sewer, electrical extension |
At Giudice Builds, we believe it’s essential to discuss ADU costs from Day 1 to ensure your design aligns with your budget. With over a decade of experience in construction, we’ve refined our process to provide accurate and realistic estimates—backed by our price guarantee. Our goal is to give you a clear understanding of the full project costs, from design and permitting to site work and construction.
Whether you’re just starting to explore the idea of adding an ADU or are ready to begin, we can provide a detailed cost estimate to help you make informed decisions and move forward with confidence.
You have a few options when it comes to financing an ADU (Accessory Dwelling Unit) or Mother in Law Suite project in Colorado Springs. At Giudice Builds, we help homeowners understand the true cost of building an ADU, from permitting and to completion.
Whether you’re building to create rental income, support multigenerational living, or boost your property’s value, it’s critical that your financing aligns with your total “all-in” project costs—not just the structure itself. We work closely with you and your lender to ensure your funding strategy supports every phase of your build.
We want our customers to have transparent pricing, we want to avoid having to make change orders if we don’t have to. That’s why we start with a clear understanding to dial in the costs. We help homeowners plan for the full picture not just the build itself, but the design, permitting, utility connections, and site prep too. It’s important that your ADU design reflects your actual budget, that’s why we are talking about budget from day one!
The process starts with a rough estimate that includes:
-Architectural design
-Permits
-Site prep
-Construction and finishes
We’ll use this as a baseline and fine-tune during the Feasibility phase, where we dig into things like grading, setbacks, and utility access.
Want to get a sense of how much your project might cost?
If you haven’t already, check out our ADU plans and pricing to explore real numbers based on past projects.
Before applying for an ADU loan, take stock of your financial situation. First, check your credit score, gather income verification documents, and consult a financial advisor if needed. Understanding your financial health will help you know your borrowing potential. You can then identify any improvements you should make before applying. This will also help you anticipate the loan programs you qualify for.
Additionally, if your family is helping pay for the ADU, you may want to read our ADU Guide for Families for important considerations regarding title.
Early in the process, consult with an experienced ADU contractor to get a rough estimate of how much your project will cost. This will give you an idea of the budget you’ll need, without diving into specific design details yet. Remember, your goal at this stage is to determine how much you can borrow or pay. By getting a general cost estimate, you can better align your design with your budget.
Get ADU lender referrals from trusted sources, such as financial advisors, contractors, or fellow homeowners who have successfully built ADUs. They can guide you to reputable lenders and help you avoid pitfalls. For non-owner occupied properties, you can also explore private money lending options. This includes bridge loans, which don’t require equity and are based purely on the total project cost. Some of these loans offer flexibility that traditional lenders don’t provide. Contact us here to learn more about private loan options for your ADU project.
Next, research various ADU loan programs to find the best fit for your needs. These may include construction loans, home equity loans, and renovation loans. Evaluate factors such as interest rates, loan terms, and potential application fees. We focuses on building your ADU, so we recommend that you talk to several lenders to compare your options.
At this stage, compile the necessary documentation for your loan application. Typically, this includes income verification, credit score details, and other financial records. Early in the application process, the focus is on verifying your financial eligibility. Specifics about the ADU project will be vetted later, so ensuring you have these personal financial documents in order is essential.
Once you’ve received initial financing approval, it’s time to begin your ADU feasibility study and design process. Select a licensed builder with ADU experience, as lenders will require contractor information and project specifics to proceed. A Feasibility Study will assess the viability of your project, providing detailed construction costs and scope of work needed for the loan. Additionally, it’s the first phase towards obtaining your construction permits. Lean more about finding the right ADU company.
As your project moves closer to the permitting stage, your loan details will be finalized. For construction loans, the lender will typically order an appraisal to estimate the future value of your property with the completed ADU. Based on our experience, submitting key documents like a floor plan, elevations, a detailed scope of work, construction budget and payment timeline is sufficient for this step. Then, if the appraisal aligns with the lender’s expectations and your financial documentation is in order, the loan will be approved, and the next steps for funding will be outlined.
Finally, once the loan is approved, funds will be disbursed according to your loan program. For HELOCs, funds may be released in one lump sum, while construction loans are typically distributed in stages, known as draws. These draws are tied to construction progress milestones. Lenders may require inspections to verify that the work is being completed as planned, releasing funds at each stage to ensure the project remains on track.
