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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 modernize an old-looking closet by just painting it, but beyond that, consider electric elements like recessed or accent lighting. If this is a large and deep closet, you can consider adding an island to the middle or a nice ottoman on a rug. Luxury closets will have even more items, like felt-lined drawers for watches and jewelry, in-wall safes, electronic shoe storage, or a tablet catalog of their items.

You can turn an adjacent room into a walking closet by just rearranging the room. This means removing the furniture and adding racks and an island in the center if you have that in your budget. Houses with two bedrooms connected to each other are great options for large walk-in closets that don't require any structural changes or much building whatsoever.

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.