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Installing drywall over existing paneling might seem convenient but generally isn't recommended by construction professionals. This approach can create moisture traps between surfaces and result in uneven walls. The better practice involves removing the paneling first, then installing fresh drywall on properly prepared surfaces. While this increases initial costs, it prevents potential long-term issues like mold growth and structural problems that could prove far more expensive to address later.

Outdated or dark wood paneling often negatively impacts buyer perception and potentially reduces home value in today's market. Most contemporary buyers prefer bright, neutral wall surfaces that make spaces feel open and adaptable. However, in certain architectural styles or historic homes, well-maintained quality paneling might actually enhance character and appeal. Market impact ultimately depends on your specific location, the quality of the paneling, and current design preferences in your region.

Wall damage during paneling removal varies significantly depending on installation methods and underlying wall conditions. Nailed paneling causes minimal damage, requiring simple hole patching. Adhesive-mounted panels present greater challenges, often pulling away sections of drywall paper or plaster when removed. Examining a small test section first helps assess potential issues. Using proper tools like a pry bar and utility knife minimizes damage, but preparing for some wall repairs is a smart approach for any paneling removal project.