A top down / bottom up shade might work actually....I have to look at it today with that in mind. All of the other windows have cellular blinds which are older and worn out and some are non-functioning or poorly functioning and one window definitely doesn't have a blind at all. I don't really like the idea of frosted film simply because we actually like to look out that window to check weather or look for daddy doing yard work or the neighborhood cat, etc. I feel like it would be a major loss if the window was obscured all the time. I agree that maybe painting the shutters white would look better. There is a lot of natural mid to dark wood throughout the house so its safe to say the previous owner really liked that look. We tend to go for lighter, brighter neutral with pops of color. I honestly had no idea about an ornamental leaded design......but I could see that possibly working after I searched some ideas. And yes, that is the stupidest place to put a bathroom. I have no idea what they were thinking. I think it would make a nice little office though, looking out on the front yard. I'd put built in shelves on the back wall so that's all you'd see when you looked in the window from the street.

I'll make the simple blanket statement that I'm a huge fan of top-down-bottom-up shades in the bathroom, especially over a tub. The top-down function is especially valuable for allowing natural light while still affording privacy. If you have bathroom lighting that can result in silhouette shadows being cast on the shade, the honeycomb cell type of shades are great at diffusing shadow lines. I'm no designer, but I'll toss this out and let those with the eyes for pretty things hash this out...would those windows and walls benefit at all with longer shades that can extend down beyond the window sill and just cover the top of the wall tile? Or will that be too sloppy?

Frustratingly, you can easily pay that much to move too in our area of Northern CA; not sure where in the region OP is located, but guessing it may be similar. We costed both and ended up concluding we could do neither, so just added a second bathroom within the existing footprint and called it a day. Not ideal, but we discussed moving to areas farther out that were within our price range, and our kids felt strongly that they would prefer to continue sharing a room in our tiny house if it meant we could stay in our community. We will probably reassess when the older one gets to high school. The second bathroom definitely helps, though! OP, do you have kid/s now and are planning on adding more, or do you not yet have children at all? If the latter, I wouldn't hesitate to renovate now--you'll have plenty of time to enjoy it. But if you already have a child or two and are planning more in the near future, you will probably feel the limitations of the space sooner rather than later, so might want to make different decisions around investments. We have two kids and I think any more than that would be pushing it in a 2/1; most families we know with three or more kids ultimately moved.

I would 100% recommend going with poly-resin shutters. They're perfect in bathrooms as they are waterproof and durable. Shutters also create a beautiful curb appeal. Here is a picture of one of our bathroom projects. We have plenty of information about design options etc on our website, depending on if you want a modern look or a more traditional style. Shutters are so versatile and you can create a look to match your style.