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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.

A foyer or entryway is typically a formal landing area for guests, located at the primary entrance of a home. It is often more formally decorated and connects directly to the main living space. In contrast, a mudroom is a more casual, utilitarian room, usually leading in from a secondary entrance like a garage or the side or rear of the house. It serves as a space for residents to remove shoes and outerwear to keep mud, dirt, and water out of the main home.

Tiny house living requires creative solutions to the one biggest issue: space. Many people in tiny houses find life most manageable if they practice minimalism. Eliminating excess items and clutter makes the living space feel bigger, which can be a significant mood booster. It can also be challenging to get utilities arranged for a tiny house, and building and zoning codes can and often do present unique challenges to overcome. 

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.