Bakobbe1 just read my mind.
Consider removing the railing.
Move the sectional over to the opposite wall, where you originally planned on it, but slide it closer to the built-ins, leaving a good 30-36" of traffic path between the step down into the room and the back of the sectional.
The lounge chair and ottoman should be able to round out your seating arrangement
TV seems to be in a logical spot, all depends if you plan to redo built-ins to tuck it back, but that can be done later on.
It may feel odd at first with the new arrangement, but leave it like that for a week, see if it starts to feel right.

Can you put the sectional on the wall the chair is currently, facing the fireplace and outside? Then move the tv to the right of the fireplace on the bookshelves and put the chair where the tv is in your photo? If you have space it might look good to add a console table behind the couch on the side that faces the railing.

So we originally put it there, but it felt like it broke up what is already a very small room...and sadly it is the biggest room in our house :( I definitely want to get rid of the railing :)

I agree about moving the sectional further into the room. From the pictures, it does not appear to be too big, as the room looks large. What about putting the TV over the fireplace?

I thought about the fireplace idea (and I always said I'd NEVER do that) but the space is too small for even our small-ish tv. What about chairs? The one in there right now is not staying. Should I get one chair? Two chairs? Size? Placement?

I have the same family room set up and problem. We don't have the step-down so we removed the rail. Made the new flooring continuous from the eat-in area and kitchen. The door set up really bisects the room and creates the awful traffic pattern and restricts seating. It is so much bester now without the railing. It really opens up new options for seating. even the sectional. We are still struggling with where to place the tv. Currently it is on the window free wall on the right side of the room. we could put it over the fireplace but I too said I would never do that.

Move the sectional first, decide on whether the TV will move, and then decide on chairs. I think your brain is in overload trying to figure out all things at the same time, but if you do little steps, it will seem much less overwhelming.
If the TV stays where it is, I say one chair. You could even add a desk and chair over where your sectional lives now, depending how the new space feels, or a bookcase or armoire.....

I agree with moving the sectional away from the wall, which enables people to walk through without going between TV and viewers.
I'd trade it with the chairs, but still a few feet from the wall. I'd position it so the corner has the most direct view of the TV.
The chairs would then go in the corner where the sectional is now, add a small table - like a reading spot.
I don't have a problem with the rail and think it might look better near the chairs than it does in contrast to the sectional. It's needed for safety and if it's not going to be replaced, I'd consider painting it.
Pathways would be 1. Behind the sectional to the books, dining room, etc. 2. From dining room between the chair grouping and the sectional to the glass exit door.

Without charting it on paper, I'd wonder if the TV could be moved to the corner where the sectional currently sits or to the wall where the chairs are located. If so, it opens up several new ideas.

It definitely doesn't look right where it is. If it doesn't look right on the long wall where you put the chair, I'd just return it. You would be much better served by a sofa (or two). A sectional just doesn't work for your space as it just gets in the way.

How much did it cost? Maybe you will be better off just returning it and buying a less expensive sofa.

Get a piece of paper, measure, write down your dimensions, and make a mock up of your furniture. This helps as it is difficult to visualize, then you will see what size your furniture should be.

I went with 2 x 78-inch sofas, and no chairs.

Castellanol, That's exactly what I wanted to do :( Sadly, we're on a budget and I can't justify spending $500 to return this thing. I have to find a way to work with it.

Can you switch it back and post a new picture? Place sectional fireplace side of the vent. Once done, is there still enough room for the chair on the other side? I removed my railing and have a step down. No room for a sofa table but you can put one against wall with that mirror above it to give purpose to the space.

I'll post a pic in a bit. Thanks, everyone! I still feel like it made the space feel cramped, but maybe I'm just used to an empty room!

I agree with some of these comments but gee it's hard to follow. I would try the sectional where the chair, ottoman and rocking chair are, with one section parallel with the fireplace built ins. I had an ivory leather sectional and loved it. I found it looked better more out into the room with a console behind one section. That way I didn't need a coffe table and the room felt more open. The interior corner of the sectional faced the TV. Incredibly cozy to sit and watch a movie or read.

Ok. Moved it. To me, this interrupts the flow of a small room. But I'm certainly no expert! Thoughts?

If he had to have a sectional, it should have had one long end against the wall and a short end (single seat) floating. Too late. If you leave it where it is, slide it forward JUST enough for a floor lamp behind it and perhaps a tall plant. A side table with lamp by railing side will help fill in and cozy up the area. Angle the chair a bit more and bring toward kitchen a bit. A higher 3 drawer chest with lamp between the chairs will break up that wall and make it feel more cozy. Coffee table and area rug. Art with color above fireplace.

Pull it back all of the way to the wall and move rocker.

Jdgail, which configuration are you talking about? The original or the one I just posted? None of the other chairs are staying. I need to buy new chairs.

Once you pull it back against the wall, please post a new pic.

Agree. Push the sectional against the wall. Put a thin sofa table behind open side

The longer 2nd posting was if you left the sectional by the windows.

Against wall

That's what I thought I'd do, BZD, but it just seems to really chop up the room...

Your last photos look good. I also like the one where there is narrow space between it and the wall. Either one will work, but, given the dimensions, I have to agree that up against the wall is best. There's still plenty of room to get around it. I noticed the chair by the window already has a customer.

You seem to have plenty of room. I think you will be really surprised once you have tables and lamps in the room. Do you have any from another room just to try out? Place chair and ottoman and post another pic from the rocker corner that catches a bit of the sectional too.

I think if you trade out the mirror for art above the fireplace it will help your eye travel to that spot, and not to the back of the sofa. Will be better. I think the sofa is pretty.

That looks so much better. Try living with that arrangement for a couple of days and see what you think then.

Given the parameters we have to deal with, I think this arrangement is your best bet.
Please live with it for awhile, until you get used to seeing the back of the sofa!
To me, it works. (No gap behind the sofa, I prefer it tight to the wall)

I think the TV will need to stay where it is because of reflections from windows. Your room is large enough for the sectional. Do you have a place to relocate everything else in the room? If so, you are going to have a better idea of what else will fit.

I like the sectional against the wall facing the TV. At least until you remove the rails. You are not going to need other seating in the room to be a large size. You can use some cube type ottomans which will serve as storage for toys and for additional seating. Get them with wheels on them to be moved as needed.

Live with those things for awhile before you purchase anything else. Maybe a grouping of 4 small square ottomans set up as a coffee table will work, You can rearrange when more seating is needed. You will need 2 small side tables to go at either end of the sectional.

Pick them wisely, maybe from a salvage yard or thrift shop. They do not need to match and they need to be small. Pick up some art after you live with the room for some time. Maybe you can find a used arc floor lamp to fit behind the sofa's corner. You will learn to love the sectional after everything has been removed from the room. Take all out & send a new photo.

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I agree with several suggestions, including removing the rail. something to attract the eye over the fireplace, and trying to move the TV, or make it a built in somehow. I would live with it both ways (on the window wall and on the long wall) for a few weeks...looks like you have a few helpers there! Good luck. I love the sofa and the house!

Would suggest a sofa table behind the sectional on the kitchen side with 2 table lamps. Is there room for a chair on the bookcase end of the sectional? Could we see a pic of the FULL window wall please?
The TV could be incorporated into the shelving to the left of the fireplace & then you would have room for another chair in place of the TV. How many seats do you need on a daily basis for your family in this room?
Can the rail be removed or is it necessary for safety ( dining chairs too close to the rail? Step down rooms most always decrease your floor space & create furniture placement problems.problems.
Now that the sectional is repositioned would there be room for 2 small chairs & a floor lamp where the child is sitting?

There would be room, Leona, but they would be BEHIND the sectional, so would not feel like they are part of the room. That's why I'm struggling with the current arrangement. Basically any other seating would be set back from the sectional.

I would suggest that you get a comfortable chair maybe leather with a large ottoman that you can use as a coffee table that matches. ( Bring in some color with the new chair or the ottoman)You can move the chair in close to the end of the sofa, keep a clear way to the outside from behind. Get an area rug to tie the chair and sectional together as a conversation grouping as well as to watch TV. In the corner where the chair is now you can put a lamp and accent chair. Or even put the rocker there with a reading lamp. Get a colored cushion for the rocker to tie it into your conversation grouping colors and it won't feel that an outsider :>). Where the rocker is now a table with another lamp as another seat for reading, it will look great next to all your books. Your room is very neutral, now so bring in one or two of your favorite colors.

I like the sectional against the wall. (It looks like a great sofa by the way). I agree with colorful art over the fireplace. Keep it simple. It will be cozy in the winter.

You don't need to do this immediately, but get a plan and colors in your head and then it is easier to see things that will tie the room together when you're out shopping or online shopping. I also had a sofa I was stuck with ( I did buy it myself and do like it) and I found some new dining room chairs in Red that I fell in love with and then it was pretty easy to start building with that color and create a flow into my combo living and dining room.

If you feel that chairs in the corner towards the living room would feel too isolated how about a desk & chair with a tall potted plant to bring some of the outside in?

You prefer it on the other side and it appears that the best TV viewing is with that set up. Move it back and put a side table with lamp by railing side (no wider than the space that is left by the railing) will help fill in and cozy up the area. Angle a pair of chairs towards each other with a higher 3 drawer chest with lamp on top. This will break up that wall and make it feel more cozy. Coffee table and area rug. Art with color above fireplace. Lose the verticals. Be careful with scale of chairs and accessories. They must compliment the size of your sectional but not overwhelm your room. If there are chairs you love from the place you bought the sofa, that would help. USE the designer from the furniture store! Bring pictures and measurements. At some point, you can remove dated railing anyway and put a small built in bookcase facing dining area.

yes, Leona had it right in that a "something" (console table or better yet, a bookcase facing into kitchen area) would help if you choose to leave it against wall. Removing the railing will really open things up :-)

This looks like one heck of a lot of bookcases. A sofa table might be best.

While this arrangement chops up the room, it appears to offer the best tv viewing. When it was in the other place in this room, one side of the sectional was on the same wall as the tv....that had to be hard to see the tv. If the sectional works best for you against the railing, I would try to move the tv to the other side of the fireplace. This current arrangement also seems to make a cozy fireplace area, too.

Set up a small console table behind the sectional as a desk area. One lamp and a stool or chair at the table. You could even sit there with your lap top and watch tv and be a part of the room, too.

Photo referencing lessismore diagram showing the sectional pulled away from the window
(pic reverse yr floor plan)

Great sectional just add bold colorful pillows even durry or Navajo from wayfair or overstock and oriental or Navajo rug under trunk or coffee table at diagonal in front of it.TJ MAxx accessories to enhance richness of room ,also Concider separate sectional two pieces with lamp and table I between,I do that with mine change of pace.

@Anne Dee: Thanks for finding and posting that! Depending on the size of the room of course, but I think it should work too. I flipped it too!

Tabell70 you read my mind. Great piece of art over the fireplace. Something large and bold with some of the blue of the sectional.

I would just pull the sectional off the wall four or so inches. Just a little breathing room. Break up the solid blue with a throw placed across the back.

Edit the bookcases a little. Add a couple of live plants.

Boy, finding a picture of a throw blanket wasn't easy! That across back of sectional and a nice plant on the floor by the wall would break up that expanse of blue and not impede on the traffic lane.

@lessismoore..........I like what you did there;-)
Another thing, I believe it has been mentioned, but i think the space would be more open if the railing "disappeared" (no offense)

take it off the wall a bit. everything is off center with it against the wall. it is very heavy and does eat up the room, but we cant worry about that now. im also thinking the 500.00 restock, and the right sofa might be the way to go. a sofa with a chez would have worked well here. take down the mirror. paint the book cases white. consider taking out some shelves and putting the tv in there or i would mount it to the fireplace. really tidy up the shelves just noticed the arch on the right and not on the left.

One way to help balance out the visual weight of the sectional would be full drapery at the windows.

If you change out your verticals to drapery & adjust the drapes to block the reflection on the TV, you can put the TV on the other side & keep the sectional right in front of the railing. Better flow. You could use storage cubes as a coffee table. Helps with the toys. Put a small end table with a lamp on both ends of the sectional. Rearrange the cubes if you need more seating.

Do edit out your bookcases. Stack some of the books & add some colorful objects & plants here & there. Consider painting the bookcases a color to blend more with the fireplace. It will enlarge the whole wall. As in the photo of Lorraine Vale. It would not need to be white. Paint the fireplace wall a shade to match the bookcases. Just try to unify that wall.