This space has really good bones! Since you like traditional, have you considered painting the paneling and built-ins?

The fireplace mantel seems to be “off” but the brick itself has a nice shape.

Remove the built in desk. It will give you more of a clean slate to work with in this space. Does the fireplace work and will you ise it? If not and If you are not prepared to demo the hearth and repair the floors, then then I’d consider making a drywall surround that covers from floor to ceiling the entire hearth / fireplace area and has built in bookshelves.

The fireplace is not that bad, it's the built-ins on each side of it. I'd remove the built-ins.

You can remove the desk and put a TV there.

No one wants a desk that faces a wall- remove it when you are putting up drywall. The fireplace is pretty neutral as is or could be replaced with literally anything. Do you have any mantles you like?

I like the fireplace. White brick is pretty darn classic, easy to decorate around, and I even like the hearth and the rounded shape. If I was looking to buy that house, I'd think of the fireplace as a big plus. I am a traditional person, too.

Take that wood down carefully and list it for sale. You will be surprised at the value that wide width butterfly pine has.

We replaced the brick from our fireplace wall and hearth with a cast stone surround. They come in a lot of different styles so you might find one you like.

Before I removed all the paneling I would remove the ceiling beams and get rid of the popcorn finish. Then I would remove the desk area and shelving on the sides of the FP. Then reevaluate.

I would have doubled the size of that slider to get more light into the space.

If the paneling is a good quality wood, I would paint or re-stain before considering removing it.

Transitional Beach House · More Info

Doverland Road · More Info

I would concentrate on removing the paneling and desk. You can work on the fireplace later down the road. Start collecting inspirational pictures.

I’d definitely consider keeping or painting the paneling! I’ve seen some really gorgeous updated looks on Houzz! We have tongue in groove paneling that is from the 40’s that we had painted. Really like it- low maintenance. I would’ve kept it natural but the rooms didn’t get enough light.