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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.

Different types of closets are defined mostly by size. A few different types of closets include:

• A reach-in closet is a smaller closet that you can stand in front of and reach everything inside it. Aside from the size, the doors and the level of drywall finish are typically the largest price factors.  

• A walk-in closet can be anything from a small 5-by-5 feet closet that has a narrow walkway with shelves on both sides to a 100 square foot bedroom-sized closet with shelving along the walls and plenty of room to move around in.

• A built-in wardrobe often does not have a door and leaves the clothes and other contents open to the room, whereas a closet usually has a door to separate it from the rest of the room.

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.

Bump-out additions can add some space to a closet without requiring any significant structural work. This entails pushing back the existing rear or side of the closet, simply moving the wall into either an adjacent room or unused space. For ground-floor closets, this could even be extended to the exterior of the home, but that has its own complications. Bump-outs are a good discussion to have with your contractor if you’re just looking to increase the space a little—not renovate the entire closet space.