Not a fan of fake grass. Not a fan of a lot of concrete in the back "yard" either.

Since you're not sold on the location of the fire pit, don't install an in-ground pit, instead, if you truly like the idea of a fire pit, invest in one of the better free standing metal types you can move as you begin to use your "new" backyard and settle on where you want it.

Alternately, instead of a fire pit, choose a safer and more practical alternative -- either a chimney w/BBQ grill within and, perhaps as a part of a privacy wall for the back yard or a two sided fireplace with one side open to the porch and one side open to the yard..

Putting a fire pit -- especially one without a cover -- in the middle of the only open grass area would not be a good idea if you have young children. Not only could it be a safety hazard but it would be in the way of a game of croquet or badminton or horseshoes or ring toss, or dodge ball or touch football or cheer leading practice or yoga or calisthenics or dancing, etc.

Have the sidewalk / stone path that leads from the house also be the same path used to access the outbuilding where pool related items would likely be stored anyway -- keep as much uninterrupted green space as possible -- at least until you have lived with your back yard a while and know with certainty how you and your family will be using it.

Know which parts of the backyard gets sun and when. Then decide if you want to create a shade zone on one side to compliment the sun zone at the pool.

These are both really good comments. Some confirming my original thoughts. Are there any artificial grass product that’s better? I also have 2 dogs so bacteria buildup would be an issue. What would I do if no grass?

With dogs, by using artificial turf you'd be putting grass rugs in the back yard that would hold bacteria -- nope. go with grass and/or clover and/or moss. If you can keep a far corner of the back yard (behind bushes) a small sandy space, pets will more than likely want do their business there -- especially if you help them learn to do that.

Also note: you can buy or build pet poo disposal / septic "systems" for beside your sand pit so you can shovel up and dispose of pet poo to help keep the smell from intruding in your back yard when you least want it to.

https://www.amazon.com/Dooley-3000-Septic-Tank-Style-Pet-Waste-Disposal/dp/B0002DI35E 

An aluminum (so will not rust) or concrete or plastic pipe -- open on both ends -- buried in a hole the same depth with a foot or more gravel beneath it and with a top to close it off can serve the same purpose. Make sure you can secure the lid so the tank will not be a hazard for small children.

IMO, folks who diss artificial turf are just not familiar with the current quality of that medium. It can last for a long time....usually 10-15 years without any maintenance; twice as long with. Most is UV resistant and depending on manufacturer, will release no more chemicals than does your living room carpet! It also does not harbor pests or diseases like a real lawn does and there are types intended specifically for use with pets (no odor or bacteria build up). And it can look and feel so real you need to get down on hands and knees to inspect to determine it is fake.

The primary drawback is that it can get hot.

What's with all the spam lately?

Anyway.. I have never had grass. I've had rock, dirt, and mulch. And I have dogs and kids--not a problem. My daughter practices her cartwheels at the park or in the living room. I prefer small rock/DG pathways and mulch for planting areas. For a pool, however, I'd go with some type of paver pathway so you aren't tracking anything around on wet feet. I didn't catch what part of the world you're build this in--did I miss it?

As noted above, the first choices are too chopped up. Do you really need 4 (!) places for people to group and sit?

I agree there is too much seating in the design, I’ve decided not have a fire pit at all. This is in southern California so the turf getting hot is an issue, but I need to do some more research.

When we designed our backyard in Northern California we wanted it to be drought tolerant. We included an area with pea gravel for the dogs. They haven’t missed the lack of grass in the yard.

Another thing you might wish to think about is how hot the area could potentially be with either fake grass or a lot of concrete, both would retain heat long into the evening of a hot, sun drenched day. My thought would lean towards retaining plant coverage to keep the area cool rather than sunbaked and too hot to enjoy.

How about this sort of idea?

Specialty Features · More Info

Ipe Wood Deck + Stepstone Pavers · More Info

Lounging Area by the Pool · More Info

You don't need to have any grass. There are all kinds of very low ground covers that are natural, add interest, and would be better with dogs than artificial turf. If you decide to go ahead with the fire pit, add a gas line so it's easy and convenient to turn on instead of the propane stand alone units. We use ours in So Cal all the time.

RD Residence · More Info

Check out SYNLawn. There's a type specifically made for pets that traps the urine smells. To clean, just hose it down or let the rain do it. There's 4" of gravel underneath so it provides excellent drainage. It's made of recycled, UV-resistant plastic and looks very natural. The company I work for installs it and I'm convinced it's a much cleaner, sustainable alternative than grass. High cost upfront, but no maintenance or water usage.

You have lots of great hardscape areas for sitting and dining. Add beauty, interest and food for pollinators with ground covers and perennials for your area. They would be gorgeous and require little maintenance. Most dogs are happy with those types of plantings as well for their needs. I have one friend who planted perrenial grasses specifically because that is where her dog liked to go, more so than in grass.

Here’s an update! I decided to remove the fire pit. Will most likely go with artificial grass.

That looks much better. You have a perfect place for a rectangular fire pit where the sofa and loveseat are. You can have a cover for it that turns it into a table and then remove it to have fire. Or just get one with wide edges outside the firebox for drinks/food/phones, feet, etc.