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Yes, adding a built-in or custom closet generally increases your home's value and makes it more attractive to potential buyers. A well-designed closet adds utility, organization, and a touch of luxury, which are appealing selling points. Most homeowners see a return on investment (ROI) of 50% to 60%; for example, a custom closet can add about $1,000 to your home's value on average. The specific ROI depends on the type, with custom walk-in closets typically providing more value than reach-in closets. However, to maximize value, ensure the closet doesn't significantly detract from the room's usable square footage. Converting an entire room into a closet can actually lower your home's value. Similarly, using overly lavish materials may not recoup their cost. A good strategy is to add a closet that takes square footage from a non-living area, such as a garage, to create a mudroom closet.

You can design your own closet, but it’s usually better to hire a professional to do the work for you. Not only will you get years of design experience to guide you toward the right layout and material choices, but you’ll also only pay slightly more hiring a professional than you would creating your own plans and hiring a carpenter. A high-quality closet designer can provide insight into how to lay out your closet, and they may be able to find you a good deal on the carpentry or complete the work using an affordable, in-house team.

Whether it’s less expensive to build or buy a closet depends on both the type of closet and whether or not you’d be constructing it yourself. The cost of custom closets built by a pro ranges from $1,300 to $3,800, but you may be able to DIY it for as little as $400. By contrast, prefabricated options go as low as $200 and up to $3,000, so it’s almost always less expensive to go this route. 

The differences between a built-in closet and a walk-in aren’t that different from a built-in wardrobe and a walk-in closet. It’s fairly simple—a walk-in closet is a closet you can physically enter, stand in, and walk around in. A built-in (whether wardrobe or closet) is more akin to covered shelves installed into a recess in the wall. Another big difference is walk-in closets almost always have traditional full-size doors, while built-ins either have no doors or use sliding doors.