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.

Thank you for your suggestions everyone. I am going to layer it with another solid rug and use it in the living room. My living room neds a bit of colour and I thought this would be perfect. Breaks my heart to think that I may have to put it elsewhere.

First of all, I don't think that furniture is comfortable enough to sit and watch TV, so the TV should be remove from that room, the purple wall paper and the purple furniture is too much, you should consider another color for that wall and the furniture against the wall it doesn't look good. What is that room at the end is kind of dark and I cannot appreciate exactly what is the purpose of that room. I'm a firm believer in skylights, we have skylights in the laundry room, kitchen, living room and office, they make a big difference. (if you cannot have skylights (or tube lights) can lights are a great option. There are a lot of great ideas from everyone. I can't wait to see the after photos.

I think this piece is quite lovely. It appears that your couch and chairs have dark wood so I would be tempted to stain or paint the buffet to match these items. Changing the large modern handles to smaller antique ones might help to make it less bulky looking and tie in with the other items in your room.. I like the idea of putting a mirror in the upper door, however much as I like the criss cross effect in the sample pictures, adding more detail may conflict with the curves in your sofa and chairs. You could look for a decorative detail that has more subtle style. As for placement, it might go on the short wall where you have a bench or even on the wall where you have your table with two chairs, one on each side to balance the look.