Looks like the previous owner took the mantel and surround with them. You can have a carpenter build a surround and mantel. You can finish it out with tilework or drywall depending on the look you want.

at least a hundred ideas.

what's your style?

budget?

I mean, you're going to have to narrow it down.

Something simple could be a DIY coat of Roman clay, or even a skim coat of cement or stucco.

or you could tile.

or do a wood trim design.

look at pictures of fireplace finishes and then come back with what you like

I'm guessing you'd rip out that filthy carpet and scrape the ceilings as well?

Beth H - I can't believe you don't like the carpet and ceiling, lol. That carpet is the first thing to go as it looks like a crime scene. I like the clean face look of drywall. Because the fireplace has the metal extending beyond the fire box, I wasn't sure what it need to be completed. Is that metal part of fire places or just left over fireplace surround.

lol.

can't really see it. post a better pic of it.

regardless, it can be fixed and redone how ever you want it!

you could also do something like this