We often think of granite countertops and fireplaces as key selling points for houses. But custom designed closets also add a lot to your home’s resale value.
I recently talked to a couple who owned one of the historic and beautiful rowhouses that make up much of Foggy Bottom. They loved the place, of course. It’s a fun and vibrant neighborhood that combines present-day excitement with a long and proud history. They loved pretty much everything about their place, but just weren’t thrilled with the space they had, especially when it came to storage.
They were torn. They wanted a custom designed closet, but also knew that they weren’t planning on living in Foggy Bottom for too much longer, so the dilemma was whether to spend the money on a closet now, when they’d be moving, or just struggle with a messy, disorganized, and cluttered lifestyle for the next 3-5 years.
Luckily, thanks to the fantastic return on investment that comes with a custom designed closet, there didn’t have to be a choice at all. The boost to their home’s retail value was matched only by the upgrade to their quality of life.
Custom Designed Closets Offer Maximum ROI
For people who aren’t looking to move right away, “ROI” might seem like a term for fix-and-flippers, or people getting ready to sell now. The promise of a distant return doesn’t always balance out an immediate expenditure. Many people also just think of natural degradation, and that they won’t receive an equal return.
It’s different with a closet. For starters, storage space never goes out of style. The heart of a custom designed closet is not only that it offers space, but it offers an elegant way to maximize whatever space you have, from slide-in belt and tie racks to handy wardrobe lifts.
Now, it’s true that the closet can suffer some wear and tear of its own, but generally not as much as other rooms that people are running in and out of. And regardless of usage, the basic design and structure of an elegant, space-maximizing feature is still there.
Some experts estimate that a custom closet gives you an astonishing 100% ROI. That is, if you spend $1000 now, that’s $1000 you can add to the value of your house. There are two competing economic arguments here. One is that, with inflation, the $1000 you get back in the future will be worth slightly less. The other is that as house prices go up with inflation, you’ll be able to ask for more than the extra grand. Either way, it is hovering near 100%.
The Aesthetic Benefits of a Custom Closet To Home Buyers
Dropping numbers for a minute, let’s just look at the immediate appeal of closet space. Storage, especially closet space, is one of the most important features for a home buyer. When they walk into a home, they look at the kitchen, the bedrooms, and the closets.
Potential homebuyers are willing to pay more for closet space, especially a custom-designed walk-in closet. As popular as items like en suite bathrooms are, only about 50% of homebuyers want to pay more for them. Fireplaces and stainless steel kitchens are even less, both hovering around 40% (and a fireplace can cost as much as $10,000 to install).
The amount of homebuyers who are eager to pay more for walk-in closets, though, tops 60%. This percentage is exceeded only by perennially popular features like central air conditioning, which is a considerably more expensive capital outlay for the current homeowner.
People are willing to pay more for a closet, but they also just find a home with a lot of space appealing at a gut level. And since we often use our brain to justify what our gut wants, it’s a great way to move toward a sell. People will look at your space, what you have done with it, and imagine themselves there.
That’s what we offered to our clients. The guarantee that in 5 years, the new people will be just as blown away as they are today. We offered them a better lifestyle now, one with more space, and a potentially great return on investment when they decided to move. We got to work providing them a better today and a brighter tomorrow.
Closet America is the D.C. area’s leading creator of custom-made designer closet, office, garage, and pantry storage spaces. Our experienced team of designers and engineers help create unique solutions that are designed with your needs in mind. Let us help you get your life more organized. Connect with us today to learn more!