For right now you need to be watering that sod every day and trying to not walk on it for a wahile.IMO a deck is the most useful area in a tard so I would start by making yours a lot bigger maybe even 2 levels. ONe level for the BBQ and table and chairs and the lower one for seating. Trying to have seating on grass is a pain. Then start along the fence withing gardening planting that will allow room on the grass for play.It is a good idea to build up a bit from grass level for the beds so that they saty confined to the planting beds . You can use a mix of shrubs, perennials some annuals for color the mix is up to you. I advise a trip to the local garden center to get ideas of what grows in you area and with your light.I would work on putting in a proper fence like the one beside the shed on the left . Gardens take time to come to the right look and could very well take more than one year to get right sometimes many years. Be realistic about how much work you are willing to do to look after it too. A veggie patch is nice with kids it starts them off loving gardening. Take your time to get it right the first time . Right now I would be planning the deck since it is still pretty cool for a lot of gardening.

Thanks Patricia! The sod was actually laid in the fall so we made it through the daily watering :) I like the two tiered deck idea!

My first addition would be privacy fencing ...then plant a tree for a shady spot in a sort of central location for the future...consulting locally for one that wont get too big over time but that will offer a fair amount of shade quickly...my favorite outdoor spot is a hammock ....so two well placed trees for that would be my favorite ....perhaps along the back fence...not sure more deck would would be the right thing in your situation....the raised covered deck usually works for the adults and a picnic table under the shade tree a perfect spot for kids....

I am assuming the little building will not be a garage?...if not a little 6-10 foot pergola attatched there would offer another outdoor seating area for a different time of day with different sun exposure...even adding a more natural small brick or stone patio under it over time ....put in wisteria or another climbing plant over the pergola to eventually add more shade and charm...

Typically, there are two main zones of landscape bed planting: 1) looking inward, from the outside looking toward the house, is foundation planting. 2) Looking outward, from the house toward the lot lines, is perimeter planting. It looks like you could use some of both. One would need a comprehensive view of these areas in order to advise specifics, and we're really not seeing much of either. It would be helpful, since you'll need it anyway, to create a base plan of the property showing all of the permanent features that will remain: house and outbuildings footprints, fences, tree trunks, drive, walks, bed lines, etc. (No small plants.) To get help here, you'd need to add complete views, which are basically panoramas showing an area from beginning to end with some additional space at each end for context. One would line the camera up central to what is being viewed and from a moderate distance away laterally. Often, using a camera's panoramic feature produces pictures too small and lacking important details. Alternatively, one can take a series of slightly overlapping, individual shots which pan the scene. One needs to be there looking through the camera in order to see, or say, which will work out best.

Along the lot line, since space is tight, a privacy fence would be a good start, but you'll probably want some large shrubs, very possibly in a tree form, in order to screen out views that exist above the fence.