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Costs range from $1,500 to $5,000, depending on size, materials, and features.

The differences between a built-in closet and a walk-in aren’t that different from a built-in wardrobe and a walk-in closet. It’s fairly simple—a walk-in closet is a closet you can physically enter, stand in, and walk around in. A built-in (whether wardrobe or closet) is more akin to covered shelves installed into a recess in the wall. Another big difference is walk-in closets almost always have traditional full-size doors, while built-ins either have no doors or use sliding doors.

You may need a building permit to add a closet, depending on the size and kind of work required to install it. The most likely scenario requiring a permit involves changing the structure of the house and performing electrical work for closet lighting. A permit can cost between $100 and $450. If you’re installing a smaller reach-in closet, a permit may not be required, but always check with your local municipality and consult a closet designer or builder.

The addition of a properly installed built-in closet will generally make a home more competitive on the market and increase its sales price. If, however, you are converting an existing room into a walk-in closet, it will likely drive the value downward. The balance between utility and value is hard to get right, but generally speaking, if you add utility with a built-in closet that doesn’t detract much from the square footage of the room, then you’ll likely add value to your home.