Room looks pretty small to have the two couches. I'd remove one and replace with a chair, angled inwards next to the fireplace. Possibly another chair (depending on space) with its back towards front door to create a cozy conversation space.

I don't love TVs mounted above the fireplace, because it's an unnatural height and hurts your neck. I'd put a big colorful painting above the fireplace instead. I can't tell if you are going to mount the TV or if you have a unit of some kind to put it on, but could you not place it on the small wall next to the door, where the vacuum is in the first picture?

Where is the cable for tv located? Sometimes the previous owner's arrangement is the best.

Will your current budget include buying new storage pieces such as taller bookcases with or without doors, like Ikea Billy bookcases?

@cara

-definitely will think about getting rid of the smaller sofa
- tv seems like it should be mounted in the cutout in the 3rd picture

@apple_pie

-cable tv is located behind the bookcase in the 2nd picture.....which is an awkward place for the tv...
-i have budget to buy whatever is necessary to make this place look nice! whatever you have an idea for could help :)

If you cannot fit the TV on the wall above the fireplace, then it needs to go across from it where you have the bookcase. Then place your sofas across from one another. Then let's see how it looks.