We were in much the same boat. We opted for mid-grade windows as an upgrade, an ICF basement which was an upgrade, installing the footings for our future deck now (when it's easier and cheaper, even though it wasn't in the initial build budget), upgraded flooring in the main space (bc it had better longevity), upgraded cabinetry, countertops. The front door. Sprayfoam insulation. The shower (steam shower) and bathtub because I'm pretty sure we'll have to use a chainsaw to get them out of there (tub is a 5'x6' 2-person jacuzzi...you can imagine). The kitchen sink was also an upgrade (pain to reinstall with the granite counters), along with the stove top (my man is an amazing cook and well...kinda deserved the spoiling since he makes dinner). In-floor heat because my old job involved showering 8 times a day in cold rooms, and I deserve to be warm after a shower. Sound proofing and insulation because again, it would be expensive to do later. We skimped on bathroom cabinetry because it's easy to replace and remembering my parents' house, it takes a ton of abuse from kids (which someday hopefully not too far in the future will occupy the space). Likewise bedroom flooring, light fixtures (did a ton of online shopping to get cheap but attractive, not a million hideous "boob" lights flushmounted everywhere). Toilets I bought $80 low flush ones with $10 seats because I really don't care about the 5 minutes I spend there a day). Fridge and stove I bought good, attractive appliances at discounted prices. They'll break in 5 years even if I bought more expensive ones. Door handles, trim, the drybar because it's easy to replace later. Same for the pantry cabinets which are currently shelves. Closet organizers because I want to spend time designing something cool.

Pretty view. Do you need light control on the upper windows? What is your budget? Two story window treatments are very expensive. If you are able to keep the upper windows uncovered, you can still have a lovely room with nice, full panels or other treatments on the lower windows. Do you have existing furniture for the room? Will you be keeping the same paint color? What is your plan for the the fireplace area? I can see that you made some changes already, what are your next steps?

I would get a longer console for the tv wall...also your tv is a bit high. What style do you like? What do the sofa's look like? Congrats on your home purchase!

It‘s time to rearrange the living room with a less focus on TV. We are family of 5 from San Francisco Bay Area living in a German rural village. Mind you the sofas are from the previous owner and haven’t thought about the living room until this week. I love color and contemporary. Goal is to have a nice sitting area for chatting and reading. Thanks for help with the layout. There is a fireplace in the middle of the room. It is used only during Th winter. Prior everything was facing the TV.