Most homeowners don't immediately think of adding custom closets as a way to increase their home's value. However, they could be missing a trick. Adding built-in closets is a relatively simple way to make your living space more practical and provide some much-needed extra storage, but it could also make your property more attractive to potential buyers when the time comes to sell.

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So, how does a custom closet add value to your home? Find out the answer below.

Do Closets Increase Home Value?

Custom closets are one of the best home improvements that add value because they are highly desirable to potential homeowners. In fact, a recent report by Forbes stated that fitted closets have "gone from a desired amenity to an expectation." Therefore, adding custom closets won't just increase your home's selling price — it could also make it much easier to sell.

Exactly how much value custom closets add to your home depends on a few factors, including their size and quality. The Closet Works says you should expect a return on investment of around 56% of the purchase and installation costs, equivalent to a home value increase of roughly $2,000.

Are Closet Systems Worth It?

In addition to installing custom closets, you may also wish to add a closet organization system to help you keep your clothes and accessories in order. A major advantage of customized closet systems is that they help you maximize the space you have available, letting you fit as much in as possible. They also help you present your clothes attractively and make it easy to locate the items you're looking for.

Closet systems are a practical, space-saving solution, so it's easy to understand why installing one could help increase your home's value. As many homebuyers won't have the time or funds available to install a closet system when they move in, adding one could make your property a more attractive prospect.

However, there are a few drawbacks to closet systems that you should be aware of. First, they're relatively expensive. According to the Organization House, you should expect to spend at least $1,500 on a custom closet system, which could be prohibitive when added to the cost of installation.

It's also worth keeping in mind that custom closet organizers could turn into an issue if you want to repurpose the closet in the future. For example, you'll need to remove a closet system designed for storing clothes if you decide to use it for general household storage later on.

Do Cedar Closets Increase Home Value?

Many homeowners choose to invest in custom closets made of cedar because it's the ideal material for storing clothes. Cedar has a naturally pleasant smell that deters insects and other unwanted household pests. It also keeps the environment inside your closet dry, protecting your clothes from moisture damage.

Cedar is also a sustainable, environmentally friendly material that doesn't require treatment with potentially harmful pesticides. Therefore, cedar closets could be a popular feature with eco-conscious home buyers, potentially increasing your home's value and making it a more attractive option when you choose to sell.

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Does a Custom Closet Add Value to Your Home?

Yes. However, you still need to consider several factors. Before you invest in custom closets, it's important to plan your home improvement project carefully to ensure that you get the best possible storage solution for your budget. Fixr says the average cost of installing a custom closet is between $2,500 and $5,000, so you'll want to be sure that the end product is both practical and attractive.

Here are a few factors to consider:

Available Space

You'll need to allow enough space inside your closet for your entire wardrobe. A small closet won't be as attractive to potential buyers as one that's generously sized. However, you also need to make sure that you leave enough floor space for the rest of your furniture without the room feeling cramped.

If you invest in custom closets, you probably won't need any extra storage furniture in the rest of your room apart from nightstands. Therefore, you can probably allow for a bit of extra storage space inside the closet without it completely taking over the space. Walk-in closets are attractive to buyers, but not at the expense of a decently sized bedroom. If you don't have room for a walk-in closet, consider repurposing an adjacent extra bedroom if you have one to create a generous closet with a dressing area.

Garment Types

Different garments require different storage spaces, and it's important to consider what you (and potential buyers) will need to fit inside. If you intend to create a his-and-hers custom closet, consider how much hanging space you need to dedicate on each side for dresses, skirts, shirts and pants.

Accessory Storage

It's not just clothes that you need to consider when planning a custom closet. You'll also need to include space for accessories such as neckties, belts, jewelry and shoes.

Extra Features

If you have the budget available, you may want to put in additional features or finishes to add a touch of luxury to your room. Full-length mirrors, counter space and bifold doors are popular with potential buyers, as are premium and eco-friendly materials such as cedar.