Do Custom Closets Increase The Value of Your Home?
Aside from the obvious lifestyle benefits custom closets offer, are they a wise financial decision? Do these enhancements actually contribute to the overall value of a home? And should you consider adding closet space to your house before you place it on the market?
The answer, according to recent market trends and expert opinions, is yes. Custom closets, including both reach-in and walk-in varieties, along with other custom storage solutions like pantries, mudrooms, and garage storage, can significantly boost a home's appeal to potential buyers, thereby enhancing its market value.
Do Custom Closets Increase Home Value?
Yes, real estate experts agree that custom closets can add significant value to your home. Ignore any specific ROI percentage you see online, like “you can recoup 60% of your investment,” or “a custom closet adds 4% to home’s value” - none of these claims are substantiated by meaningful data. But USA Today, when referencing data from the National Association of Realtors, suggests that 60% of homebuyers will pay more for a home with a custom closet.
Custom closets are more than just a means of organizing your belongings; they are a symbol of luxury, thoughtful design and status. In a survey conducted by the National Association of Home Builders, closet design was ranked as a highly desirable feature, particularly among younger homebuyers.
The Main Benefit: Stand Apart in a Competitive Market
In a competitive market, homes with more character sell for more money. The custom closet will not add value to the appraisal of the home, as it obviously doesn’t add square footage, land, or anything like that. But it can set off a bidding war between motivated buyers. As long as your custom closet is not too highly personalized, potential buyers will see the closet, feel the status it imparts to them, and imagine themselves living in a luxurious and clutter-free home.
Add Your Custom Closet To Help Your Home Sell Faster
Reach-In Closets Are Cost-Effective and Add Home Value
Reach-in closets, commonly found in smaller bedrooms, hallways, or entryways, offer a compact and efficient storage solution. A well-designed reach-in closet that incorporates smart shelving, hanging space, and drawers can make a small area feel significantly larger and more organized. This perceived increase in usable space can be particularly appealing to potential buyers, making your home stand out in the competitive real estate market.
We wrote a blog on the cost of a reach-in closet, and depending on the materials you choose, you may be able to get a reach-in closet installed for as little as $800. It could go up to $2K depending on your specifications, but that’s a small price to pay for something that will make your home sell more quickly.
Walk-In Closets Can Increase the Purchase Price, Not the “Value,” of a Home
A spacious, well-organized walk-in closet can serve as a strong selling point for a home. Again, don’t expect your listing agent and appraiser to pump an additional 10% to the home’s value – it has more to do with adding features that will urge qualified buyers to bid against each other. Image the photos on Zillow of a tasteful home with a walk-in closet that has shiplap, contemporary paneling, or something along those lines. The “wow” factor will help your house be more competitive on the market.
You may need to shell out about $5K to hire our custom closet builders in NOVA, and the price can balloon to $25K if you want to enjoy crown molding, luxurious paneling, quiet-close pull-out drawers, and other luxury touches. But if you will use the closet and enjoy it, it’s worth the investment.
Other Storage Can Be a Good Value-Add as Well
While custom closets are a significant draw, other storage solutions like pantries, mudrooms, and garage storage also contribute to a home's overall value as well. A well-organized pantry with custom shelving can turn an ordinary kitchen into a gourmet chef's dream. Mudrooms with built-in storage keep homes tidy and add functionality, particularly in regions with inclement weather. Customized garage storage solutions can transform a cluttered, underutilized space into a highly efficient area, appealing to homeowners who value organization and space optimization.
Call Us For a Complimentary Quote and Design Consultation
If you are thinking about adding custom storage to your home, give us a call! There’s no risk to you. We do better work, have better materials, and provide better guarantees than other contractors serving Maryland and the DC area. We have decades of experience, and we would be happy to speak with you about a custom closet, pantry, garage storage unit, mudroom, office, home library, or anything else.