Thank you for your feedback! I tried switching the couch and chair but because of the break in the wall, the couch is too big for the corner. I would have really preferred the chair in the window too!! The media area is small, so I’m still looking for a new stand. I’m thinking a bit more industrial with the brick...

I’m also looking to recover the chair and ottoman, so I’m open to fabric recommendations too!

If possible, I would get a lower, wider credenza for the TV and place it on the wall left of the fireplace. Then float the sofa perpendicular to the dining room opening with the chair where the chaise portion was at the window. On the wall where the sconce is you can hang that piece of art above a sofa table 25% wider than the art. A smaller coffee table and a different style of floor lamp than the torchiere would be better. Meanwhile, sell the big coffee table on Craig's List and use your footstool instead. If your chair and footstool are in good condition, you might just slipcover them for now.

Great ideas! Thank you!!

What a cute little house. First unless your furniture pieces are high end quality pieces worth the cost of reupholstering, then buying new will be less expensive. I agree with above about trying to relocate TV to the wall to the left of fireplace. An area rug would be good to anchor the space. You can find upholstered head boards for near nothing now and that would add to the bedroom. Also finding some remade drapery panels for the windows would be nice.

pink_peony makes a good point about re-upholstering furniture. It's rarely economical unless you have a high quality piece of furniture.

At this point, I think your focus in the living room should be pricing appropriately sized sofas. You'll find that a sofa will serve you much better over the years, than a sectional. Buy the absolute best you can afford in a classic shape and color you know you won't tire of.

Your bedding looks good. Consider folding back the duvet for a more layered look. You will need a more substantial bed side lamp. There are many affordable options at your local discount or consignment stores. Maybe deepen the restful tones of your palette in an art piece for above the bed.

I like to consider my sight lines upon entering a room. I find that being presented with electronics, such as TV's, doesn't feel welcoming. The recommendations above may be your best option. But, I'd like you to consider the below once you have an appropriately sized sofa.

Since it sounds like you are prepared to buy new stuff, I will say I agree with Manon above: sofa rather than the sectional. Sectionals can work well in large open floor plans, but so many people seem to find that they don't work well when they move and have less space or a different configuration. Sofas, or a sofa and chairs, will allow you more flexibility now and in your next move(s).