Congrats on your new home! This room is fantastic and provides lots of options for you!! Depending on what you will be using the room for, a basic set up could be: sofa facing fireplace, coffee table in front of sofa, have a large rug under the sofa and coffee table to ground the area. I would take two chairs and place them at a diagonal on each side of the fireplace in front of the windows, facing sofa. I would add drapes to each window (but hang them higher than the actual window & make sure the bottom of the drapes are lightly touching the floor). In regards to the the fireplace, I would remove the tile and replace it either with a decorative tile, or stone (again depending on your taste). Possibly add a fresh coat of pain to the room will also make a huge difference. I would also add a physical mantel to go over the fireplace. Possibly some floor lamps behind the chairs next to the windows (this creates balance/symmetry). Hopefully this gets your mind rolling! Good luck!! You have a great space to work with!!

samantha

Agree with previous poster, but you may be able to go a step further. Trend right now is no window treatments but something you may consider are decorative window films-see pics. Next, for the large blank wall, you might do a graphic wallcovering or faux brick or stone depending on your budget. If your room is long enough, I would split it by creating two seating areas using back to back sofas, one having storage units and/ or tv if necessary. Since you have a little one, I would do upholstered ottomans or ottoman/coffee table combo.

More pics...

These are amazing ideas as I have just posted a similar design dilema