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Building a custom closet costs about $2,000, on average. Because many types, sizes, and designs are available, the cost to build custom closets ranges from $250 to $6,000 or more. A reach-in closet is on the lower end of the price range from about $250 to $1,500, compared to a walk-in closet at $750 to $3,500 or a wardrobe at the high end between $1,500 and $6,000 or more.

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.

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.

The main difference between a closet and a wardrobe is that a closet is a separate room for general storage with its own door, and a wardrobe can be either built-in or freestanding place to store clothing. A walk-in or reach-in closet connected to a bedroom often serves the same purpose as a wardrobe by primarily storing clothes and shoes. A built-in wardrobe often does not have doors and leaves clothes exposed to view, whereas a standalone wardrobe usually has doors.

Yes, building a custom closet can definitely add value to your home. Creating a more useful and pleasing space to your home, especially a custom closet for prospective home buyers to imagine as their own, is likely to increase the value. However, avoid overdoing it with a closet that takes up too much space that’s otherwise more useful as living space, or paying extra for overly lavish materials and finishes that aren’t likely to add more value than they cost.