A lot of the closet is taken up by the hallway, so I wouldn’t give up that storage space unless you had a second closet in the master or were confident you didn’t need the additional storage. I think laundry room size is largely dependent upon family size, lifestyle, etc., but, for what it’s worth, I cut our laundry room in half to get a second walk in closet in the master because it felt like wasted space to me based on how I do laundry (I fold in the bedroom while watching TV). We’re still under construction, so can’t say whether it was the right choice - but it felt right for us! Long story short, think carefully about your storage needs and how you do laundry.

good point about hallway...we currently have a huge combo office laundry mud craft area...so this will be a change having a dedicated spot for each. ha. we now have 2 in college and 1 in HS so laundry will be more in bursts...most of the time very little...so probably don't need as much space as I'm used to needing...but I always think resale [former realtor and current home stager] and people love laundry rooms. lol we also currently have a closet much smaller and a little bigger is all we 'think' we need....but i don't want to take any space from closet as that's also good for resale.

I'm thinking pocket door entry then on left tub then washer dryer with hanging racks...not sure if any space left on that wall after...then on window wall, counter top for folding and cubbies under for laundry baskets and upper cabinets or shelves .on right of window [and left if room?] just not sure if best use of space.

Move the pocket doors from bathroom to closet and from closet to laundry to center instead of on right side. This way you can have hanging in closet on both long walls. Clothes can’t turn corners so with such a nice big closet it will actually give you more hanging and storage space in your closet.

Because they are pocket doors they won’t impact going in/out of the master bath or laundry

What would you put in all the baskets shown in pic #1? That just seems likely to become dusty junk space...

I like how cp’s suggestion regains some usable space in the closet.

Re-sale is definitely an important consideration if you plan to sell in the foreseeable future, but because laundry preferences are so lifestyle dependent, i imagine it would only alienate a small subset of buyers who require a large laundry room. For me, second story laundry was more important than large laundry room. Others like it main level, others basement, etc. Can’t please em all, so prioritize your present needs!