If you're going to update this much, it will be worthwhile to remove the border and wallpaper as well. Use Shout to spray the wallpaper; dissolves the glue proteins for easier removal.

Backsplash - "inexpensive" is almost not possible. And "plain" is more classic than intricate. Find a subway tile or a 2x4" tile that is close to the color of the countertops, something a solid color. This size is more classic than other sizes, yet give a modernized look. In a kitchen this small, continuity and similarities will make it appear bigger and more "polished." It may not sound exciting, but it will show off the countertops and look better. If you can afford it, continue the tile around the entire window so you don't have make a another decision about wall paint cololr. Once you find some options, post them (maybe a separate thread?) for opinions if you're in doubt.

Do you plan to replace the flooring as well? Keep it classic and neutral. A wood-look would work, although you'll have to be careful about the tone with those cherry cabs. With such a small footprint, you could go w/tiles. I'll see if I can find some photos.

[houzz=https://www.houzz.com/photos/four-seasons-residence-san-francisco-contemporary-kitchen-san-francisco-phvw-vp~1780900]

Thanks @inkwitch. Yes, the wallpaper, border and floor will be replaced as well and I thought I would post separate threads for that but your feedback is much appreciated. How far around the window are you suggesting I take the tile? Do you mean the same horizontal width as behind the sink but stretch it to the window instead of stopping at the corner? I don't want anything too trendy since I need to appeal to buyers but I do need it to stand out. Thanks again!

I'd take it to the window frame. By taking the backsplash into a complete wrap-around, it creates continuous flow. The type of backsplash you pick will eliminate a trendy vibe, but you do want to look "updated," not "dated" for sale value. Look at some photos on houzz where this is done. Personally, I would take the tile all the way to the ceiling, eliminating the necessity for finding a paint color, and there are photos that show this in a small galley kitchen.

div><a href='https://www.houzz.com/photos/wetherby-contemporary-kitchen-london-phvw-vp~18757248'><img

[https://www.houzz.com/photos/kitchen-historic-townhouse-brooklyn-new-york-traditional-kitchen-new-york-phvw-vp~89454[(https://www.houzz.com/photos/kitchen-historic-townhouse-brooklyn-new-york-traditional-kitchen-new-york-phvw-vp~89454)

Thanks so much @inkwitch! The pics I posted are only 1/2 of the kitchen. There's another 1/2 which is an eat-in. Here's a pic and pardon the condition since there's construction still going on. This section also has wallpaper and border on 3 walls along with the dated vinlyl tile which I need to update. There are no cabinets here and the lighting fixture will be replaced and I planned on matching the fixtures in both sections. I planned on painting this section along with the window/radiator/trim in the same color. Any suggestions? I need to tie the paint, floor and backsplash together somehow. There's also a door which I plan to remove. I initially thought about breaking through the wall you're viewing to create a passthru or widening the doorway to 5 feet but I don't think it's worth the investment. I will probably just remove the door. Thanks again for the input!

It might be that you need some visual aid in order to move forward with your project. Perhaps sharing a design from our portfolio will inspire you?

Thanks @Ladd Suydam Contracting, LLC . I now understand the continuity concept in the small space. Is that 2X4 or 3X6 subway tile in your pic? I'm comparing the outdated creamy white tile I currently have down and I think I need more of a tan/beige/taupe/warmer neutral tone of tile. There isn't a hint of white/creamy white in the granite but I do see tones of taupe/beige/tan. Actually, a solid tile the color in the color of the home depot bag would be a perfect match. I don't know how to describe the color but it's somewhere along the taupe family I think. Thanks again!

Sorry for the delay in responding! We used a 3x6 tile for this kitchen. One thing to consider, if you go too beige you might create a "muddy" feel if the beige is too similar to the countertop. I don't think you need to shy away from a lighter creamy white. It might actually help your countertop stand out and be it's own thing in the kitchen and be highlighted. See if you can bring some samples home. ( a few of the same color so you can lay them out in a brick style and see how it works.) We also just did a white subway tile shower. the color was white but if you laid it next to a true white our tile showed slightly creamier. It translated as a little softer. We used the same color for the grout. When it comes to subway tile you can go a few different ways with the grout color. We tend to gravitate towards the lighter grout. You can still see the brick pattern but it doesn't become too busy.

You could also look at white or cream in a glass, which will have slightly different undertones and will also bring some sparkle and interest without adding anything busy. Just a thought.

Taupe could work that way too, with the glass giving it a bit of lightness.