IMO. Don’t hang the panels as high as the transom. I think it will look awkward with the abutting transom; nor would I hang panels over the windows.

I suggest plantation shutters on all the windows. You do not have room on the right to stack back fabric.

I would do the fixed panels on each side as you suggested, with rod at the top of the transom. Your right it would look funny to have sheers on bottom window only, so only solution would be to have sheers on transom window also. My 1st choice would be plantation shutters also on bottom 4 windows.

What about half shutters?

I am not crazy about half shutters and I don't think they will have the support necessary in the wider window. You'll need to do full shutters. Other options are custom made roman shades with dummy panels on the ends and in the corner of the windows.

It seems like you haven't been in the space since I don't see furniture. Live in the space to see what issues are arising. Is the transome glaring in on the tv? Is the room too hot? You could easily fit a drapery track above the transome window and go wall to wall with ripple fold drapery which does not require a lot of stacking space. You could use a tie back when they are opened to pull them back a bit more.

We just closed escrow last week. I tore down a wall between living & dining room, replaced all the gross old carpet upstairs, repainted the whole house, and are installing dark, wide planked, distressed hardwood floors on Thursday. Hoping to move in by the weekend. I also ripped out all the vertical blinds. It's a busy street with a school a few blocks away so we need privacy, not so much light control. Don't want to spend a lot of $ right now because we are planning on replacing the Windows soon. When we do, I definitely like the shutter idea! Thank you all for the advice!

solor shades.

How exciting - Congrats! I'd put a rod under the transom -- a black one. Then they will all be level.

I like laurakdesigns' idea of a black rod under the transom. Contrast would be beautiful with the gray walls and white curtains.

this is what I have done so far... still haven't addressed the privacy issue. Only get a little direct sunlight in the morning and its formal living room only I use for quiet time.

Well done, looks lovely.

Enjoy it!

Nicely done. A screen or privacy film on windows might do the trick.

I like your choice so far. You could put a solar shade on the center window if you need sun control and privacy. Simple and clean with various levels of transparency. I would not put anything on the uppers. And I would not choose shutters for this architecture. Do add some color in fabrics and art. Do graph-paper furniture arrangements before you bring the furniture in. You may want a rug in the living room... Another opportunity for color.