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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.

There are certainly luxury upgrades you can make but you can seriously improve the look and functionality of a closet without spending much money. Color matching will make the closet seem bigger so any shelves painted the same as the wall is a good tip. While pre-made closet organizers may seem expensive they offer an aesthetic look that's hard to achieve with DIY methods. Lastly, removing clutter and unworn items will help the closet seem bigger and cleaner.

Although you can complete a closet frame in just an afternoon, finishing the entire closet will take a few days to a week. However, that’s still not as much as the average time it takes to remodel a closet, which can take anywhere from several weeks to more than a month. That’s because you also have to consider the time it will take to demolish the existing space, plan a new design, order materials, and actually install it. 

Plywood, MDF (medium-density fiberboard), and solid wood are all popular options for closet shelving. Plywood and solid wood are sturdy and ideal for extended shelves or heavy items. MDF is a budget-friendly choice for light to moderate storage, but it can sag under heavy weight if not adequately supported. Wire shelving is another alternative that allows airflow, making it especially useful in humid spaces such as laundry rooms or basements.