If you are replacing the floor, I would get rid of the half wall between living and dining area.

The paint color is simple and neutral, so I would live with it for now. The flooring is a hot mess but, as Patricia notes, there is no sense changing things until you have a long-term cohesive plan. There are a lot of considerations: who will live in the house (people, animals, kids)? what is your budget?

Start an idea book of things you like in terms of style and color. Get moved in and decide where the trouble spots are... things like what kind of furniture arrangement works with that fireplace area? are doors necessary to keep noise at a minimum?

I suspect there will be a lot more things you will want to change which might require a bigger budget and professional help like a structural engineer/architect/designer. Don't make quick decisions now that will be $ wasted towards an overall plan going forward.

Congrats on your new place - it is quite bright and has a lot of nice space!

Thanks for the the feedback! We'll be here for at least the next 5 years. We'll have a month before we move in that we wanted to do something since the house will be empty but I see what you mean about living there and seeing what our needs are.

I wanted to put in a proper island at some point but that's far down the line in budget. The lighting is certainly doable though.

I agree that living there first might give you a better sense of a plan. That said, if it's empty for a month before moving in, add the recessed lighting and update the light fixtures. That, in of itself, will make the house look "new"

Are you keeping appliances? You could get new ones such that they can be re-used when you remodel your kitchen down the road.

It is nice to do things you want done before you move in but when it comes to major expenses it may be better to wait and live there to see what actually works for you. I think removing the half wall between the dining/living areas would be nice but it looks like it has a step down. It would help to have the flooring consistent through rooms that are open to each other. I wasn't crazy about the layout of my new kitchen or the cabinetry but really love them now. I still hate the layout of our master bath but don't really know how I would like to change it. Every wall was a pink beige that I hated so we did paint before moving everything in. Do the things you want to do with resale in mind but make it nice for you.

You appear to have both a cooktop and a stove - are both functional? I think a island will have to come as part of a full-scale remodel in that space to be effective. You need to have room for the door to swing, the DW and fridge to open and a way to maintain your work triangles. You may be able to reuse the existing cabinetry in a new way with a new floor, but as much as you are eager to get started I think you should concentrate on a plan for the future as budget allows.

I would not put in new recessed lighting until you determine your long-term plan. Change the lightbulbs for a more true/clear color! Pick up more current fixtures on the cheap from craigslist or FB marketplace if you really feel like you need to update. The place looks clean and well cared-for which is a great start.

The half wall is there to prevent people from falling down the step into the living room. I would be reluctant to get rid of the wall, unless you raise the LR floor to match the rest of the house.

I would remove the one half wall and unify the flooring before moving in. The rest can wait

I echo Patricia's comments. Please live in the house for about 6 months before you decide to make any changes. There may be surprises that you need to spend money on. The flow may not function well for you. The kitchen needs a lot of work!! So, see how it works for you and then decide what to do.