I think you really need to speak with a local architect. Your lot does slope alot. This is immediately evident as you look at the front photo, which shows 1 level. Then when you look at the back photo, you see 3 levels. I think a good architect can discuss realistic options and cost for your project's scope of work. I have seen a number of similar home situations where the garage was attached for easy drive in off the street. Then there was living space built below the garage. Of course you are not talking wood structure for the garage floor, but one of your requirements is to maintain the large open space of the back yard. You will have to weight the costs and options. Best to do this with a good local architect. Make a few calls, explain your project intentions, and ask if they charge for a first visit (meeting). Many architects will not charge for the first visit. It provides them an opportunity to meet you, get to know you and your home. Ask questions as well as allow you to ask questions. Then they go back to their office and provide you with a proposal for providing architectural services.

I was trying to give every wishes to Kathy and 2 of them were to move the closet so there is no window close to it and the closet is beside the bathroom and the bedroom is kept over 14'-6". I must say though that if Kathy is willing to move her closet to the north wall, there are advantages that the other layout does not offer: - Even though the above layout offer more storage all together, the layout below has better access inside the and feels less cramped - better view from the entrance of the bedroom - only 2 doors: one for the bedroom and one for the bathroom

Ok, a coupla of thoughts only written because there's a substantial amount of your hard earned money on the line in an endeavor with no "do overs"... -The hallway zigs and zags back to a dead end. What's that going to feel like? -The office has no source of natural light. That's not really a "must" in of itself but the laundry occupies a significant length of exterior wall. Your laundry has no window either which is ok but maybe swap out the two (and when I say "swap" it's obviously more then just relabeling the two spaces) some plan rework is needed here. -The dining room.....you say you don't want "formal" but that's what it is. I'd get it oriented to the kitchen better with a more informal, flowing, comfortable feel. And where are you going to sit down and have a bowl of cereal? Have a comfortable eating space where both can happen. -When I have a house with an entry leading to a living space in an open plan, I think in terms of a "circulation spine" which skirts the "edge" of each open area. I posted some plans in an "ideabook" a while back for entirely different reasons but go there and you can maybe see what I'm talking about (come to think of it, also look at how the dining areas in those houses are handled too..... informal, comfortable and ample). But the best of luck in your project. Exciting times.

I prefer B. because of the toilet and vanity. those will be the most used in the middle of the night, so are nice to be close to the door. I like that the toilet has a little more privacy and that it isn't visible walking in the door. I like that the vanity is more planted in the space not floating. I like freestanding tubs over platforms. I'd consider swapping the bath/shower positions for easier access to both. it would also allow for a longer vanity. a widow can be placed high in the shower to allow natural light but not be a problem with the shower. maybe change the doors to pocket doors to not take up space in the rooms? I also like that there is a window in the walk-in closet. natural light is preferable over having to turn on a light every time you walk into a room. there are many options for privacy glass to choose from. you could also make it more like a room by using draperies. adding a little luxury into the function. split the hanging to 2 areas one straight in the door the other where you now show the built-ins. moving the built ins to under the window will give husband and wife separate spaces. instead of double hanging rods built-ins could be used under a single rod if they are needed more than hanging space.