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Custom closet renovations offer a return on investment of 50% to 60%. This means that if you spend $2,000 on a closet remodel, you can expect to see your home's value increase by $1,000 to $1,200. Investing in a custom closet allows you to enhance your daily living experience while building equity.

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.

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.

Some features and upgrades you can add (some of which increase the closet’s value) are: modular shelving, motion-activated lighting, climate control, custom lighting, cigar humidors, revolving shoe racks, jewelry shelves, custom woodwork, and built-in laundry hampers. While only truly luxury closets have all of these, many custom closets have at least one special feature listed above.