Expert: Tina Clarke - 6/13/2008

Question
We are in the process of selling a 33yr old Townhouse in Virginia and the original owner finished the basement with paneling and suspended ceiling.  He also put in very attractive wood beams in the ceiling. While the paneling is wood, it is not a real dark wood (probably an oak color). To ready the house for sale, we did install new carpet in the basement and the paneling looks like brand new even though it's 33yrs old. (we have been in the house for 28 years ourselves.

Because the paneling is in great shape and the basement looks very nice, we do not want to have to spend the money at this late stage with tearing down the paneling and putting up drywall. However, it appears that most basements in houses for sale these days have all eliminated the paneling and put up drywall, even though the experts say that drywal is not that good for a basement due to moisture. Our broker says to do nothing as we would never get back our investment to replace the paneling with drywall. Plus, he tells us that for every buyer that might not like a paneled basement, there would be the same number who wouldn't mind it at all.

So, I guess the question is, will a basement with paneling in today's market be a deal breaker for most buyers or would most buyers not really care as long as the basement recroom looks really nice? We realize that the paneling is old, however we have always maintained it (always cleaned it by wiping it down) and so it seems a shame to replace it now just because the trend today is towards drywalling a basement.

Thanks in advance for any of your thoughts on this. As our house is already listed for sale, it would be a major issue to try to get the paneling torn out and replaced by drywall while possible buyers are coming into the house to look at it.

Answer
Is the paneling painted?  If not, this would be a good way to update the walls.  I agree with your broker, do not take the paneling out and replace it with drywall.  Prime it and paint it a nice light/very pale neutral color, like a light tan, yellow, green or blue. Once you've done this, a buyer is not going to care whether it's paneling or drywall, it's just going to look good.