I think some nice patio couches would make the space more inviting.

A 12x12 patio is an average size, just about room for a table and chairs. I'd buy a wrought iron round table (& WI table top although this shows a glass top) and 4 very comfortable chairs. An umbrella as needed. Sit in various chairs before you buy.

Thanks Jeannie, i like the idea of couches but since the top of the pergola is open i am not sure if cushions out there would work. I would love to have something soft and cozy, i just don't know how to set it up.

Cushions will not be a problem as long as you make sure the fabric is Sunbrella. The material dries very quickly after rain and it is highly resistant to the elements.

Thanks TanCalGal, the round table looks nice, i also like the chairs. The all set is small enough for the space

Thanks John, I have never heard of sunbrella i will check it out.

Perhaps add an umbrella and new chairs (similar to the image I have posted). You could add more seating as well. You can purchase covers for the pieces or simply store the cushions in the garage in between uses...

Forgot the table image...lol! Adding potted plants and some candles will also help make the space more inviting, as well. We have a small covered porch (9x13) that holds a table with 4 chairs and two rockers, plus a dozen potted plants:-)

Stamps Design Services - i love the chairs, i have the table and umbrella now, the umbrella is more brownish gray. Because of the Pergola i get enough shade i don't need an umbrella. I am wondering whether i should just replace the chairs. I thought of painting them but they are hard to work with.

Are they comfortable? Do you like them? If yes, then paint them...if no, then it is time for new ones! The large ones in the first post (left side) are very, very comfortable and should last for many years, but are not inexpensive. The ones in the second post are comfortable and budget friendly. An indoor outdoor rug can give an extra bit of color and pattern to an out door space. Adding potted plants/flowers and lights can make a deck special day or night... you can also use citronella candles to help keep mosquitos away :-)

what about some benches along one of the fences? and where do you have the BBQ located? from that second picture it seems like you would out the table and chairs in the shady back corner...and the BBQ along the house? or against the rails that are opposite the door. if so some benches along the house there would look great. I second the thoughts about potted plants! a large one the anchor the corner of the seating area then even one or a grouping near the stairs

I did a quick floorplan obviously not to scale but what about this set up? or check out homestyler.com you can draw walls with your own dimensions... furniture options are not very good but at least you could play with the arrangement easily

Stamps Design Service - they are comfortable but i find i only sit on them when having dinner outside. I need somewhere cozy to read a book. I think i need to think beyond furniture. I have a lot of potted plants that i could move up to the deck and re-decorate the space like Dana mentioned above. Thanks for the great suggestions.

Dana - That is actually the setting we had before, the bbq is off the deck now, i need to clean it well, and i was hoping by taking it out i would get a better idea where to set up everything.

I have a lot of potted plants, i think i will add them and see how it looks. I love the idea of a bench, i think that would actually work better without being too imposing.

Should i paint the planters and bench the same colour as deck?

Rissa I was waiting for your response! and there is no way to get hubby to move the BBQ off the deck? even adding a stone area right to the left or right to put the BBQ on would free up so much space and I think give you a little reading area that you desire. Putting some brick down or another stone could be an easy/ affordable weekend project.

If thats not in the books for now does my layout seem correct? With the BBQ it does not seem like there is much space to put another seating area besides maybe some ottomans or benches like I've shown next to the grill.

As far as colors I think it really depends on what your looking for? Maybe also depends on if you buy new patio furniture/cushions. I think matching the bench to the other furniture is the way to go. I think planters in a terra cotta or something visually interesting would brighten up the space. Do you have any inspiration photos of what your trying to achieve out there? Or photos of some interior rooms so I can get an idea of your style?

I tried uploading more pictures the first time it didn't work i will again now.

Here are more pictures. The area with the small pots i am thinking i might put a bench with cushion, and the gas thank is in the bbq area.
The other side of the deck where the bbq sits is close to the basement fireplace vent, placing the bbq in that side might not be safe.

Two more, i just noticed i don't like the spaces in between the two bottom stairs, i like the clean look of the first level.

I don't know how to add my idea book here maybe i will copy and paste links

Link to my ideabook

http://www.houzz.com/ideabooks/7376906

i like this one too and the chairs on this one

what would hubby say about doing a little weekend project of adding a brick/stone patio area for BBQ?

and wow what a green lawn!! fun for kiddos I'm sure. Those two pictures are very different so I'm not sure what style you think will work best. The first is very modern and clean lines. The second has a colonial feel almost, very americana with the red/white/blue scheme. And the third seems to take some tuscan influence.

What does the space look like if you were standing in the lawn looking at the BBQ? That is where I would put a little area for the BBQ. That frees up the area along that fence for a bench seating area...

BTW of the inspiration photos you posted, I love the white and blue scheme! The deck in your house seems almost greenish? So that might work better with what you have existing then the dark ratan/red inspiration.

Weekend patio idea will not fly. I think i might have pushed him too hard on the summer projects this year, he just repainted the fence, you can see from the first picture i posted the fence looks different. The colors we have on the deck are two tones of grey, i like the Tuscan look, i included the Red one for the Rattan chairs. The first picture very modern look is not my taste, i was trying to post the link to my idea book. I just came from Homedepot and they had a this set on sale

http://www.homedepot.ca/product/westbury-4-person-adjustable-conversation-set/822509.
I like the look but i will need bbq out of the deck for space, i have some convincing to do.

Oh! That set is very nice! If you can convince him to move BBQ off and make a brick area it you could easily have another seating area like that on your deck... Maybe not 4 chairs but definitely 2.

ok so I did a little research for you, these are super easy to install and its under $60 bucks! You can put them right over the grass or put some sand down first. it is more of a temporary fix I.M.O but easy enough for you to do by yourself, that way you don't have to convince anyone to help you with the project!

http://www.homedepot.com/p/t/100662053?productId=100662053&storeId=10051&langId=-1&catalogId=10053&MERCH=REC%2d%5f%2dproduct%2d4%2d%5f%2d203352073%2d%5f%2d100662053%2d%5f%2dN#.UesmjmA5SdE

these are actual brick pavers which might take a little longer to install but could also look great

http://www.lowes.com/pd_357663-215-20500_4294720418__?productId=3722170&Ns=p_product_avg_rating|1&pl=1&currentURL=%3FNs%3Dp_product_avg_rating%7C1&facetInfo=#BVRRWidgetID

maybe you could set it up like this...very rough dimensions in this picture! if you put the grill like that with the seating along the railing hubby could still be included in conversations and such. if its still not going to happen, I would definitely buy some new chairs and or cushions get some plants up there and add ottomans or benches.

I did a quick inexpensive decorating, less than $100, using mostly what i have.
Unfortunately the BBQ won.

Rissa! Great job on that little corner! Very cute!

Thank you Dana, the tall plant in the corner made a difference. The bbq stays unfortunately.

Looks much more inviting :-)