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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.

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. 

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.

Fortunately, there are no hard and fast rules or regulations regarding the height of closet shelving. However, the typical height for a single closet shelf with a hanging bar is 70 inches from the floor. For a double-hanging system, use 84 to 85 inches from the floor for the top one and 42 inches for the lower.