Terrazzo tile is enjoying a moment. Porcelain lookalikes can be had much cheaper though.

https://www.marazziusa.com/products/terrazzo-look/curation/stucco

https://www.marazziusa.com/products/terrazzo-look/curation/clay

OOOH What a fabulous space! I agree completely about warming up the ceiling paint. I have wood beams and have my ceiling painted an off white and it made a huge difference. I love the look of the wood floor or a vinyl plank. The engineered would be nice so then you can do a wide plank. I would figure out lighting after you have moved in and have a sense of what you may need - add more , etc and have it all done at the same time.

Congrats on the house!

Given the mid-century modern look you’re aiming for, keeping the dense wool carpet for now and having it professionally cleaned is a practical choice, especially with pets. If you want to upgrade later, installing hardwood in a warm, medium tone will complement the wood beams and paneling and enhance the MCM aesthetic. Laminate works for high traffic, but it won’t have the same character as real wood. Tile or marmoleum could feel out of place with the mid-century style, unless used strategically in smaller areas like entryways or kitchens.

I'd keep the carpet until you are ready for a make over. The first thing I would do is remove the ceiling fan and replace with a MCM style light fixture.

Price out new wool carpeting of similar quality. Sticker shock is likely. You can get the current wool carpet cleaned by professionals.

The short curtains are very much of the mid century. If you like the authentic look, have one set cleaned first to see how they look. If not, look at shutters, Roman shades, or other types of shades. All those are compatible with the baseboard heating.

Old carpet yuck makes me shiver to think what is under there. What is your plan for furniture are you going MCM . I would do hardwood right over all that asbestos save the stupid money for removal . Marmoleum could be fun but quite a comittment style wise . I agree the ceiling needs a warmer color for sure . I love MCM so always my lean for sure . Great house but those drapes need to go too

I like hardwood in a natural color, not dyed. It holds up better than laminate. I guess the first question is about your furniture. Will it go with the drapes and rug? If your furniture will go nicely with the room, I'd go for a professional clean --- they might have already done that --- and see how it goes.

How is carpet an option with pets beats me

cool house. the drapes though, need to go

So many great comments. Thanks everyone! None of the flooring companies would put hardwood, laminate or even LVP over the asbestos tile, so they would only put carpet. I chose a slightly darker carpet shade called Midas Touch (I guess it has a gold tone). It will blend with the stone on the hearth. Here's the mockup. It will be low-pile enough that if I choose to use an area rug, it will be fine. I can't wait to get my own furniture in there and set up house!

How ridiculous it that they won't put down a floor thta does bretehe but one that does this is plain stupid All you needed was thin layer plywood and do what ever floor ypu want over top

Such a fabulous house - I hope you come back and keep us updated :) I would love to live vicariously thru your progress

Your carpet choice isn't bad at all. It does work well with the stone and wall color. I totally agree with others that having the ceiling painted a warmer white will help a lot. It is a gorgeous room!

Well you can float an engineered wood floor with the proper underlayment over old linoleum with asbestos as it encapsulates the asbestos. But that doesn’t take into account the height of a new floor and how it would impact all of the door clearances, the dishwasher clearance in the kitchen, etc. so, from a budget perspective it probably is best to replace with new carpet. It wouldn’t be cheap but it would be very practical (and future area rug friendly) to consider Flor tiles. They make some textures that look like sisal which would be a nice look for the style of the home. If you can time it with their 30% off and free shipping time of the year it may be a very wise move. If you have pets it really is a good way to go as a square is easily popped up, washed under the sink and then dried and popped back in. They offer $2 samples so it’s worth it to get a bunch and then order a couple of the larger tile sizes after you’ve narrowed it down. We have used the tiles as area rugs in some spaces and as wall to wall in our studio/office space. It’s DIY friendly. Good luck with the new home - I love that style of home! https://www.flor.com

It is a beautiful space! I’d keep the current carpet until you can afford to safely remove asbestos and then replace it with either hardwood or engineered hardwood. Wall to wall carpet would be my last choice particularly with pets! Curtains are far too short. They should be hung high and wide.

Just re read your initial post and saw you mentioned marmoleum…for some reason I did not pick up on that initially. If you can find a competent installer that knows how to do it that would be a great option for you.