The Cost of $200 in Carpet?

As I've mentioned before, we're working to get our house on the market by next spring. On our list of to do's was replace the horrid 80's sea foam green wool carpet in the sunroom. As usual when it comes to home improvements nothing's as simple as it seems. This is what replacing carpet looks like in our household.Yes....that's the wall striped down to the studs. Now I'll admit that I've secretly wanted to do this to the sunroon for years (paneling is never an architecual detail to be embraced) but this really wasn't what I wanted when I told Scott I wanted to take up the carpet.

We haven't used the sunroom much in the past year or so and when I opened it up this spring I noticed a distinct musty smell. On further investigation I noticed one of the romaine shades had a stain on it. When I pulled the couch out abit the carpet was moldy and and the paneling felt spongy. Well any how if you take a good look at the photo you'll notice aside from the wall being striped down, there's no window sill, no window for that fact. Anyhow, luckily I don't see any termite damage but obviously this issue has been festering for quite some time. The studs are completely rotted out. We'll need to get a building permit to open things up from outside to get a better look at what we're dealing with. So have any guesses on what $200 in carpet really costs?