gramarows, this is a home that I plan on being in for a long time unless I meet someone and start a family. I'm single and buying by myself, so my budget could not accommodate all of the things I wanted (no pantry, no walk-in closet). But I did get many great things (size, location, overall style, big yard, front porch, nothing I have to immediately gut) that I did want. The market in my city is going crazy and I ended up at the top of my budget just to get this house - and had to beat 3 other offers to do so. To get a "better" house would easily cost $30k-40k more. I really love a lot about it and my decision to buy it is reinforced every time I cruise around Zillow! I looked at so many cramped Capes and weird ranches before I found this house. No house is ever perfect and it's not like this kitchen is impossible - just not ideal. My thought is if I spend a reasonable amount money to optimize the kitchen, it will not only be more workable for me living in it, but also help resale (way) down the line. $20k for this fix is not reasonable! :) I may start with the contractor friend who just redid my parents' kitchen and see if he can give me a quick opinion. I'd like him to do some of the reno also, because he did a great job with my parents. Russ, do you mean I could bump out into that space without actually moving the corner pieces? As in leave the structural corners/load-bearing sections in tact but create a space in there? Like so: Because THAT would really work for me. I could stick the fridge and a cabinet beside it. The main problem I have is where to put the fridge, because I feel that it can't be left next to the range in a "good" layout but anywhere else really takes up awkward floor space.

Instead of a Murphy bed, you could do a Murphy DESK aka wall desk. Bed and chest (or nightstand) should go on the wall where desk is presently located. Murphy desk would go on opposite wall. It means you can't have papers lying around as table top would have to be pulled up when expecting guests.

People can distinguish between a minimum of one million colors. But you have not shown me the gray or yellow you wish to use, so it's impossible for me to be sure of the colors' impact. If you wish to keep the bay as a focal point then paint all of the now green areas with whatever color you choose. Unify the bay with the chair rail by using the same color. As to patterns, this room is already busy with chair rails, windows and trim. If you have a wall that is plain in comparison consider a semi-gloss stencil over an eggshell base. The pattern is visible but muted. HERE is an example.

You need to get estimates in your area costs can differ dramatically from one area to another. A picture of the space from the exterior and interior could help make a guess maybe. Bumping out is like building a small addition it needs all the things a house needs to be useable for living. Do mean the whole bump out is 6’ deep and then how wide?