Are you using the "rumpus room"? What about the study? Moving the bath/laundry into the study would give you more room in the kitchen and a more logical entry from the patio. You could then add study space in the rumpus room.

I'd make the kitchen bath into a powder room and move the kitchen area bath and bedroom 4 to the 'rumpus room' area and rethink the kitchen layout.

Sorry but I need a ton more info . I agree the rumpus room seems to be the obvius space to get rid of if the rest needs to be larger. I assume when you say stove you mean fireplace somwhere . The house is poorly layed out for so many things like how to get from kitchen to alfresco . WOW really this is a rip it all out and start over to really make sense . The full bath accessed through the living space I think the whole bedroom bathroom area would be best designed where the rumpus room and other bedrooms and study are That would free up that whole area where bed 4 DRLR and full bath are now . I guess it really comes down to budget for sure .Then the kitchen could go along the right wall with a nice galley style including BR 4 and that leaves the whole rest of that space then for a huge great room

Thanks everyone, yes Patricia it really is a terrible layout and a lot needs to be knocked and rebuilt. we havent put an offer in on the house yet because of this reason. trying to figure out how much we need to spend and its looking like a lot as its not just cosmetic work!

Is this in Australia?

Sometimes it makes sense to buy an older house for the lot value, tear down the house and start over. If you remodel 70% of an old house, you still have an old house!

You need to do the math and compare:

1) buying this house and making extensive renovations

2) buying a nicer, more expensive, house using what would have been the renovation budget above.

3) buy ugly/old house on great lot, tear down and build new. You will spend a bit more, but will have a new house with all the latest/efficient windows, systems, etc.