My new fixer-upper has a sunken living room with carpet that extends 4 inches up the wall. The dry wall was never actually extended down to the floor, so there is a 4" gap between the end of the wall and the floor. I do not want to extend the new carpet up to meet the wall. What do you recommend? I was thinking of putting in base boards. They'd have to be about 1 inch thick to stick out from the wall like a 1/2 " base board. The realtor suggests having a contractor put in drywall (essentially 4" all the way around to match the rest of the wall), which will have to be textured to match the walls. The other problem is transitioning the two entry ways into the living room - which entails a step down from the similarly carpeted hallway and the tiled kitchen.
By the way, I also have very little $$$ to do this!