Here are the pictures for reference

Thank you all so much for the ideas. I'll send you the picture of my current furniture layout when i get a chance.

What color rug do you suggest? I have light gray walls.

Would something like this look good?

https://www.wayfair.com/rugs/pdp/bungalow-rose-annabel-light-bluefuchsia-area-rug-bgls4800.html?piid=31131747 

And also i'm not sure about the color of the furniture. I'm looking for a more modern look and light weight furniture and want to have more space for kids to play.

Also i'm thinking of getting Cellular shades for now and later install curtains.

Does light gray or Darker gray do well with this layout?

Any furniture ideas and rug ideas i would really appreciate :)

Thank all for your suggestions i really appreciate all your inputs on this.

I have a brown leather sectional but I’m open to buying a new one along with a matching rug. Just looking for some ideas

Wow what a great space. I would start with the rug. probably get a 9x12 or larger. Without any information on your taste suggestions would just be a shot in the dark. I often suggest rugs from Horchow.com. If there is to be a TV in the space I would place it on a console to the left of the FP. Over the FP looks to high for comfortable viewing.

Does it have to be a sectional? Since you have so much space maybe consider twin couches? I find mine to be more versatile and they don't close off traffic like a sectional can.

Are you open to building out the fireplace? You could build out the left side for your tv and be closer to the window.

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Definitely put art over the fireplace instead of a tv. Currently, the windows look like eyes and the fireplace, the mouth. A tv might finish off the "face" w a nose. :)

You need a large area rug (10' x 13' maybe). Esalerugs.com is having a 60% off sale. They offer free shipping and free returns. Ends today, though. May be too quick for a decision.

I don't see a problem. Those realtor's photos distort the space, so it probably isn't as big as it looks. But a sectional could be placed with the two legs facing the windows and the fireplace, a couple of chairs could face the sectional with their backs to the windows. TV on a console to the left of the fireplace.

Move your current furniture in and see how it works. It will give you a better idea of what you want to replace and what sizes you need.