I love planning spaces so I took some time and drew up three ideas for you. This was my first idea, with the thought that it would be nice to have the most used room at the forefront. But soon realized you'd have a larger folding area if you used the top of your washer and dryer for folding so I made a few changes utilizing the last photo GeoKid shared as inspiration. Then it dawned on me that having the two sinks basically side by side and the fact that moving the toilet would be costly I thought I should remove the bathroom sink and use a double sink with a large deep side for soaking and small shallow side for washing hands when something is soaking. This last one is my favorite. Even though it doesn't give you two separate rooms I feel, because of the W/D being hidden you get the best use of the space without having the added cost of moving too much of the plumbing and electrical. This post was edited by justgotabme on Wed, Sep 18, 13 at 21:03

Both powder rooms and laundry rooms add a ton of value to a home. I suggest you talk to a local realtor and see how these changes would impact your home value. My guess is that losing a bathroom will hurt your value, even in exchange for a laundry room so I would try to at least keep it as a powder room. But ask someone in your local real estate market to see.

So much great advice (and no judgement - thank you!) — I wanted to update, we’ve confirmed it’s only shellac! Thankfully, and we’ll be working on removing as much as possible tomorrow, with heat off and windows open. Pics below, including my husband cleaning his mess lol. Great tips on the floor - you’re points are right on, and given the work the walls will be I’d like an easier alternative for the floors for sure. The left window is actually a door that a previous owner caulked shut, but we’re planning to open and make functional again. Otherwise there isn’t much room for anything, but it would be ideal to move the sink elsewhere to have more wiggle room in the “bathroom”. We did take a quick look today at more narrow utility sink/ vanity combos, and while not perfect should be an improvement. At this point it feels that is still quite far in the future, but hopeful the shellac removal is quicker than I anticipate. Once again THANK YOU, I have been so delighted to find such a knowledgeable (and patient) community!!!

The overall layout feels like we are wasting space. The architect gave us his best with this layout. He basically changed the shower to a linen closet and moved the door to the area to be centered versus more to the left as it is now. Another thing we are not aligned with. We don‘t have to add the new window as marked on the plans. Would I be better off removing all the details and asking for layout help with a blank rectangle? Current window stays in place. I‘d like to believe there is a better layout than what we have. Thank you.