For reference here is our floor plan, keep it mind that the room in question is labeled as the "Family Room".

Something isn't right. As was mentioned, where are the receptacles?

You could put the TV on the solid wall and have the sofa face it. You would float the sofa, which means that the sofa back is not against a wall. Add side tables, lamps and maybe a coffee table.

Can you access the floor from below, like from an unfinished basement? If so, once you know where you want the sofa, you could have an electrician come in and add at least one floor outlet near the sofa to make it easier to plug in the lamps.

Not everyone agrees about putting a rug on top of another one, but I think you need color in this room, especially since your furniture is neutral. Orientals have lots of color in them but you can choose other types, just make sure they have warm colors in them to go with the wall color and kitchen. With your brown sofa you might want to consider the orange chairs to liven up the room, and have a rug with terracotta color in it. I think it would really liven up this large space, especially if you select pillows for the couch that have that some color in them. Is it possible to have the TV on a long console on the wall that has no windows? You could put the furniture in that direction and ignore the fireplace except for putting a nice painting there.

@saypoint: Pictures of furniture are attached below. I have two accent chairs.

Also, I was wondering if placing the sofa across from the fireplace will block the flow from the kitchen to the Family Room. Also, with a sectional is it possible to place a chair on each side? Could you provide any pictures/sketches so I can better understand the placement. Thank you for your help!!

@grapefruit1_ar : The receptacles for the TV are in the TV nook. Also, there is one receptacle/outlet on every wall. Some cant be seen from the picture because they are almost the same color as the wall. The previous owners replaced a few of them only (with a different color).

@graywings123: Sorry I cannot picture in my mind your suggestion for placing the sofa, side tables, and lamps...Could u maybe provide a sketch?

Also, we do not have a basement

@ingrid_vc so. CA zone 9: I love your suggestion regarding orange chairs but unfortunately, we have already purchased linen chairs. I was thinking of a sea blue-ish theme but after your suggestion regarding orange/terracotta...I am liking it more! Can u provide some pictures of the rugs you think will go with our living room?

If we place the TV on the wall hat has no windows, we will have to place the sectional opposite to it, near the windows and patio doors. We tried it and there was not enough room...the end of the sectional was almost aligning the patio door and partially blocking the opening from the family room to the kitchen. Then, we did not know where to place the chairs :-(...What do u think?

I was thinking something along the lines of this...

You can use the colors of the rug, like the terracotta, in your pillows on the chairs. It's too bad you don't have room for the alternative placement of the TV, and in that case I would get a console to put catty-corner on the walls next to the fireplace on the right, even though the windows will be behind the TV. Since you say this is not your permanent home perhaps that will do as a stopgap measure. The couch should be facing the fireplace, unless you want to angle everything to face the TV. The chairs will go perpendicular to the couch. The fireplace nook you can fill with a painting or perhaps an arrangement of blue and white Chinese porcelain (have a look at etsy). With a beautiful rug I'd suggest a glass and metal coffee table so the rug design shows through. You'd also need side tables but I see no way that you can have lamps without trailing cords. Find a way to display books on the tables, which give a lived-in look. Pardon me if I use pictures of my home to illustrate some of these points; your taste may be quite different, but it's just to give you some ideas.

This rug is made of polypropylene and therefore much more affordable, but you can see how these colors would brighten your room and give you colors for pillows on your couch and chairs. You can find rugs on e-bay, overstock.com, pottery barn, just google area rugs and then indicate "traditional" or "oriental" and you'll find lots of ideas.

TV goes here:

If you do this, make sure the chaise does not extend in front of the fireplace. It just looks bad.

I would not do a rug over carpet. There are enough other places to add color, in art and accessories, that you really don't need a rug.