Is the photoshopped pic the plan you have now for the area?

The first pic is one of the actual room (in process)?

How many people will use the room? Looks like it is set up for 2 children/students and two adults.

I'm confused. The first photo is your room today and the second is what you desire the room to be?

The built-in desk and reading nook are really nice. I don't think the rug and chairs complement one another. The rug pattern is kind of wild, so I would consider solid fabric for the chairs.

I would also get chairs with back support for the desk. Those benches won't be comfortable for long.

Do your kids do their work at that white table? I think more comfortable chairs would be great, like Lisa S mentioned. Also, if that is where they do their work, they have nothing to look at except the wall in front of them. Maybe add some bean bags, pillows or poufs so that they can use the coffee table as a desk if wanted. I would change the chairs to something more colorful like the yellow ones in the first photo. I would add a credenza, maybe under the window. That could be used as extra storage or as a bench if needed. Is that carpet in the second photo? Are you getting rid of the wood floors?

The first picture is the actual mess of a room that it has been. The second ,lower picture is a photoshop of what I want and am working on at the moment. I plan on keeping the wood floor, but I couldn't photoshop it in just right so it looks like a carpet. You can't tell from this picture, but on the left side is a huge dining table with chairs. They use this as a desk sometimes. The white long-wall-desk is for computer related use. At least that's my goal. What color bean bags do you suggest?

I would do red beanbags to match the red lettering above the nook. The desk seems perfect for computer related work. Do you need more closed storage for things that can be out of sight after the school day has ended?

It looks like you know what you want. Your design idea for the updated room is great! First things first, get a carpenter, contractor, handyman to come to measure and quote. Once your built ins are taken care of you can start accessorizing.

I agree with texture and color being something that would help. I would use 2-3 of the same chairs with a patterned rug, or a textural rug and patterned chairs. Then add in a couple interesting pillows and a throw for coziness value. Keep your color palette in mind, using the color of choice in the accessories, pillows, throws, curtains and neutral colors for your chairs and rug will allow you to change out colors if you tire of them easily without alot of expense. Layers tend to add a coziness/warmth/interest aspect. Layer pillows with throws, layer books with accessories, layer textures. You have alot of smooth flat surfaces that can use texture added to give some interest and warmth. Greenery adds color, life and interest. Fake plants have come a very long way if you don't have a green thumb. Also styling the shelves and bookshelves will make a big difference. Instead of having all the books on at the top which makes it feel top heavy- alternate books lower and upper in random ways. Break up books with bookends, plants & some accessories on each shelf. Use textural accessories. It will visually feel lighter if its not solid books on each shelf. There are alot of great helpful posts on Pinterest that can help with bookshelf styling...possibly on Houzz as well. I would consider doing your wood accent wall on the long wall with the shelves for a bigger impact and making the inset on the other wall a chalkboard/corkboard/wallpaper inset instead. I don't know if I would frame out the inset with shelving around it, to me it throws off the window next to it....but I do like the seat you incorporated, again, layer pillows there. Just a few thoughts that may be helpful. :) You gotta do what you love though and what works for you personally in your space. Have fun and Best wishes! =)

Thank you ilikefriday!