I think they mean 5 rooms, not 5 bedrooms.....one master bedroom and 2 bedrooms for children with twin beds or bunk beds in each. I lived in a 1,300 sq ft house for 2 yrs with my husband and 2 sons. My suggestion would be to have an open floor plan for the kitchen, dining area and family room in one large room. Add a bar in the kitchen for casual dining. Be sure to include storage in family room for toys, games, etc. Add a built in desk in eiher the kitchen or family room areas . The master bedroom and bath should be large enough to accomodate a queen size bed and if possible a sitting area (maybe a bay window large enough for for a small loveseat or a couple of comfortable chairs). I would recommend a large walkin shower but no tub for the master bath. Instead have a nice size tub/ shower combo in the hall bath. Too make your house feel larger, use neutral camel, beige, gold or grey paint and carpet through out the kitchen, dining area, family, hallways and hallbath. If you want to add color, limit it to 3 bedrooms. Hanging all your window treatments at ceiling height will make your rooms feel larger and taller.

You need to give more info as to your style desired. Check out the styles you like on the photo section of houzz to help find some inspirational photos. Other considerations are where you live....urban or country.

There is a specialty lighting store near me that I am going to soon with photos to work on lighting at my house. I will show them your photo and see if they have an idea. Probably won't be till Fri or Sat but will get back to you.

Nowadays builders from Delhi and NCR are shifting to places like alwar and bhiwadi for apartment construction, as delhi and NCR are not vacant for construction. So, the building materials charges have increased comparatively. Even if you save 5000 or 10000 in design fee, it won't make any difference. As, ultimately you have to bear contractor charges and building materials.