Many thanks to everybody who answered, you have all been very helpful in clarifying my very muddled thoughts. Here is a hopefully clearer description of the situation: The house is a 50's ranch style, with 3 bedrooms and a hall bath (4.5x8.5 ft) clustered on one side of the house, and the kitchen, office/den and another hall bath (4x9 ft) on the other side of the house, with a great room in the middle. We plan to stay in this house as long as we can, but we are in this city for my husband's work, and if something happens (although unlikely with his kind of job), we know we'll have to move somewhere else; therefore, we'd like to make updates to the house while keeping resale in mind. Our (excellent) realtor said that for resale we should have an ensuite. After reading the comments, I have to clarify with him if he thinks a lack of ensuite will narrow down the market significantly, or if we 'simply' would not get the best price for the house. Most houses in the area are old (in the whole city actually), and we saw plenty without ensuites. We saw two of the neighbors' houses, and they did not have ensuites. This is what we considered: 1. Redo the bathrooms with the existing footprint (not that we have room to change anything inside), but we can go far into making them pretty, 2. Add a door from the master bedroom to the hall bath next to it, and close access from the hall. This I think would be a bad idea, not only because the people in the other two bedrooms will have to go across the house to the other bathroom, but also because the master bedroom will end up with windows on two walls, three closets on another, and two doors on the fourth side. Not restful. 3. Add another bathroom next to the master bedroom where the closets are, with one closet door transformed into a bathroom door. This bathroom would be 4.5x12 ft, although it could go to 5x12 if need be (but no more, because we'll hit a big window), which will have a shower but no bathtub. We talked to a professional who said it will fit fine with the caveat that the toilet will likely be the first thing you see in front of the door because of the current clearance requirements. 4. Build an addition. This again I think would be a very bad idea, since it would be blindingly expensive and the house is already on the higher side of square footage for the surrounding area. We will of course fix everything that is broken. The interior doors are the original 50s doors, hollow core dark wood look with lots of scuffs and holes, and they were cut short to fit the now non-existent carpet, so I would qualify changing them as fixing what is broken (and they bug me every time I look at them... ). The windows are a perk; we are still divided on those. I tend toward option 1, while my husband is going for option 3, although he agrees we do not need another bathroom. The reason I feel ill equipped to make this decision is that I'm originally from Europe, and even after so many years here I feel mildly perplexed about the North American love affair with bathrooms. Our previous rental was built in the last ten years and had a huge ensuite which I didn't like. I found it hard to keep as clean as I thought it should be, and it was so large I felt as if I was doing my business in public. Given the bathroom pictures on Houzz, I'm clearly in a minority. Your comments help ensure that I don't miss anything that might otherwise be obvious, so thanks again. And extra thanks to whoever makes it to the end of this post...

Benjesbride, where does she lose the 2"? It appears that she is not aware of the loss. Rebeccamomof123, are you pulling permits to do the work, or do you live in an area where the city/town/county inspectors are going to become aware of the work and expect to come in and inspect it? Or is your area more like where I live and anything short of an addition is something that no one will notice and that inspectors don't drop in when workmen are around unless it is really obvious that a big job is being done? The reason I ask is that your clearance for the toilet-to-tub distance is right on the edge of being okay. Some towns will not let you get that close. If you could get inspected by the code enforcement officer, or if you are doing this with permits, you need to draw this up and get it approved before assuming it is going to be approved. If you need to steal back a couple of inches to make it fit, one option is a wall-hung toilet. Your contractor opens up the wall behind your toilet and puts the tank and flushing works inside the wall (not the stuff you have, it is custom made for this purpose) and then the toilet part actually hangs off the wall and never touches the floor. It is much nicer for cleaning. All of Europe has been doing it this way for years, I hear. http://www.geberitnorthamerica.com/en_us/target_groups/enduser/products_enduser/toilets_2/concealed_systems_1/for_toilets_1.html

I agree with Cpartist"s layout and like moving the closet over as suggested by D M so that bedroom 3 has easier access to the bathroom. Do you have room to have the toilet face the tub and add a linen cabinet next to the toilet? How wide is the tub toilet area?

So do we. Are you going to show us pictures and give us an idea of your budget?