Wood panels were one of my "no way" things too... it's just too retro for me, and it's a big job to change (since you're right, it's the walls, and generally wood panels were put up in order to conceal problems with the sheet rock... kind of like a drop ceiling... you know there is something narsty up there or they wouldn't have put in a drop ceiling!). To change the color or texture... something like a bamboo or fabric trifold screen, a large hanging of some sort (like a neutral quilt, drama drapes, or art house style collection of neutral framed prints) or a large plant and uplight that might add interest/depth. Or staging the room so the feel is sort of rustic cabin (making the wood work for the look)? If you google wood paneling you'll find a lot of sites talking about how to get rid of it or ways to minimize it before selling.
But all that said, different markets have different things that stand out. Around here, wood paneling is a no-go but a single bathroom for a four bedroom house is considered normal. In other markets, not having at least two full baths would be a kiss of death for a house. So if the agent isn't worried about the wood, and is in fact pushing that element, then it may be a non-issue in your market! Maybe just ask them about why they wanted it in the info, or what they think about it in general?
Random question- has anyone here had an induction? Any tips? I'm really nervous about tomorrow, in large part because it just seems wrong/surreal to walk into a L&D ward without actually being in labor. I mean, what am I supposed to /do/? Just sit there? As a vbac they can't use pitocin, and unless I'm dilated to 4cm+ they wont do an AROM, so what? I'm just really confused, and HATE being confused! Especially about something this significant.