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Not sure that repainting will add value, but it'll probably make it easier and quicker to sell.
You'll be forced to tidy the place, it'll look fresher and more cared for, and light, neutral colours (well, white or magnolia) make the place look more spacious and make it easier for buyers to imagine their stuff in there.
Might make the difference between selling in three days and three months.
(Quite seriously, a friend put in a couple of weeks of effort with his place, and then invited the estate agent in at the beginning of a week. Went on the market on the Thursday: he had three offers by close of business on the Monday.)
jsabine
I think your agent is right but perhaps aren't saying what they really mean. The problem isn't that buyers will try to knock money off for repainting, the more fundamental problem is that non-neutral colours put buyers off or make them reduce their bids.
Not for logical reasons (walls are easily and cheaply repainted) but because a lot of people just don't like coloured rooms. White rooms do tend to look bigger too.
Painting it all white is a no-brainer. Fair enough if you can't be bothered, but you could potentially be looking at losing thousands because you can't be bothered.