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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.

There are a few reasons custom closets are expensive: materials used, the luxury factor, and time to build. The people who can afford custom closets are those who can afford increased rates, and construction workers and contractors know this and charge accordingly. The time to build custom closets is substantial, especially if expensive material is being used or intricate details (like carved wood) are added to the project. 

On average, building a custom or built-in closet costs around $2,100. However, the total price can range from as little as $500 for a simple DIY project to $6,000 or more for a large, high-end custom closet. Most projects typically fall between $1,500 and $5,000.

The final cost depends on several factors, including the closet's size, type, materials, and features. Here is a general cost breakdown by closet type:

• Reach-in closet: $500 to $1,500

• Walk-in closet: $750 to $5,000

• Wardrobe: $2,000 to $6,000 or more

Choosing a prefabricated closet system is generally less expensive than a fully custom build. The scope of design and construction services will also significantly impact the price.