I’d think a bigger closet would be worth more.

If you have a family, do a lot of laundry, or value household efficiency, a dedicated laundry room (with storage, counter space, possibly a sink) can significantly improve daily life.

Resale value is heavily weighed by the buyer. Different buyers have different needs/wants. Having three kids and tons of laundry.....My vote goes for a larger laundry room with space to actually fold or hang freshly laundered clothing.

My vote is larger laundry room. I am not a fan of laundry closets. I do not have a ton of clothes or shoes so a larger closet would not be needed for me.

Having this debate as we design a retirement home. I am pushing for a larger laundry room with a window and sink. But large and separate closets are a must for a master suite.

"We have functioned perfectly well for years with a laundry closet such as in option 1, and also don't have enough clothes to fill either walk in closet ."

The question, really hasn't enough context as to just you and DH, or kids, or guests , or anything else. Is it a dumb question? Well? Sort of! : ) And because of the first statement which implies EITHER is fine with how you are used to living!

Also because you haven't bought it yet, and you are worrying on resale.

What about the rest of the home? Specifically the kitchen, the baths....?

If this is a downsize to retirement living and you aren't a clothes horse, and have been living modestly? Look at the whole of the home, and realize you could be looking at $$$ upgrades as "models" usually do not represent the base model. They have the bells and whistles.

If you are used to more closed up spaces such as in a kitchen and separate living room? Make sure you LIKE the idea of a more open floor plan.

You are focused on the wrong thing : )

I prefer a main floor laundry to one upstairs . I love my walk in closet I use it every day maybe more than once . I do laundry while I am doing other stuff so would not want to have to run up and down stairs every time the machines beep. What I am saying is you do what works best for you not some imaginary buyer down the road .

I will always choose a separate laundry room away from my clothes closet. Our laundry room creates enough lint and dust, probably from cleaning the dryer lint screen, that I don't need any more all over my clean clothes hanging in a closet. Nor would I want the humidity generated by the washer. Also, a laundry room leaves space for the front-load washer door to stay open.

This is just my personal preference. I would never ever buy a home with the W/D inside a clothes closet.

Does the house have enough storage for other soft goods? Like out of season linens, extra towels, and the like. If not, the larger closet could also serve as your linen closet. Or if you have off season clothes that need storage. Or heck, bins of your crafting goods, or kids old artwork, or a big safe, whatever. You don't have to store just clothes in a closet if you don't want to. If given a choice between more storage capable or walking into a laundry closet, I would choose the storage option. Especially if you are already used to a laundry closet.

If having the bigger laundry room meant it also could host more cabinets, storage, sink sorts of extras, I might say go for that instead. A good laundry room is, well, good. But if you are just making a laundry closet a step in closet without any other real extra or benefit.... I'd just use the footage on the closet side.

A completely radical idea is to have a pass through between the closet and laundry room with murphy doors. You can fold your laundry onto the "table" created when the doors are open, and be able to directly pass your closet items into the closet. If you end up storing a lot in that closet, might be a handy thing.

It really depends on the storage in the rest of the house. Are there places to store seasonal clothes and decorations/ linens/ craft stuff/shoes/coats/pantry goods? Depending on where you need overflow could determine where to put those extra inches.

I am in the beginning of planning my home. It has no basement and will have no attic. I am paring down all my stuff and creating the rooms with maximum closet capacity/depth to store what remains. Laundry will be in a closet with the water heater and full shelving above for more storage ( had this in a condo years ago and loved it ).

I Fold laundry DIRECTLY from the dryer and directly INTO the laundry basket sitting on the floor. Including sheets.

I never knew folding was such an issue: )

For me = bigger laundry room.

I have a laundry closet I love it it is quite wide so hiuses shelves alon one side for linens and the other side houses the Vacuplow hose I have a cabinet above the front loaders holds all the stuff I need and I too fold on top of the W/D and put awy when done .

Go with what works best for you and not some future buyer. Since our closet is larger than our laundry room, I use the extra space in the upper closet to store bedding and bulk buy supplies (kleenex, toilet paper, etc.).