I think two sofas facing each other, with their back feet placed just inside the border of your rug would work very well. Consider getting a smaller coffee table for each of them. I'd consider glass and metal so you can see the beautiful rug underneath. Use the large hassock and recliner up on the balcony for a reading nook. A couple of accent chairs, facing the FP would complete your sitting area. I would steer clear of black, and would look for caramel, gold, yellow and red for in a long chesterfiels and some accent chairs. prefer longer chesterfields in more caramel or yellow tones or even red.

Although the house is four square, the wall color does not need to be the same but needs to compliment each other. Go to an art store or even online and look at a colorwheel. Decide whither you like opposites or sidebyside colors. Then make up your own colorwheel with things you love [i.e. yellow daisies for the yellow spot, red lipstick for the red] and then use that as a jumping point to direct you. I find that using one color throughout can be limiting in itself. Take out the things you do not LOVE

All the suggestions provided are right on! However, I believe you are worried about the use and function of the room over the decor. I would suggest that you go neutral and add color with the accessories like pictures, pillows, vases, and plants. If you prefer earth tones go with reds, oranges, yellow, and green. I would definitely lighten the floor by adding a lighter rug with very little pattern this will lift the room up. Also, add draperies with a side swag to the windows. Use a round coffee table in glass or perhaps a color like red. Place pillows on the sofa and chairs to make them more comfortable. Add plants and a tall tree to showcase the height near the left window. It always helps to post progress pictures so we may all see and make suggestions. Hope this helps you, Merry Christmas!

I just goggled, "I live in a small town - how can I share a rating on my contractor" and this Houzz piece came up. I had never used a contractor before -- am newly retired and wanted to do a few improvements within a small budget. I happened upon a "yard sale" where Jim and Dave had their business in Toledo OR (97391) - Big Red Construction Services. I bought a big old table for my art space. A few months later, I called a contractor who had been recommended and after a couple of failed communications, decided to call Big Red. Jim and Dave have known each other since kindergarten. They must have been taught early to get along, because they are an amazing team. Jim let me know that they start at around 10:30 - take a lunch around 1 and then work til around 4 oe 5. This might not suit everyone, but it was perfect for me. I'm a night owl and like my quiet morning time, which is sometimes early and sometimes late. I have an old house (1928) which is a bit wonky. They replaced my front door and framed it up properly. I had a deck put going from the side door of the kitchen to the back of the house. They did a great job. I will add photos when I get my phone this week. What I loved most, other than the excellent work, was the communication. I felt that we were collaborators every step of the way. If there was a concern, it was discussed openly. I highly recommend them if you are in the Lincoln County, Oregon area.