Floor Plan

Here's what I recommend for the floor plan. My aim here is to achieve what the inspiration picture contains, and to minimize costs in other areas as much as possible. The following numbers are noted on the plan above:
1. 7x16 entry space allows front door to face the street. This also allows some room for entering the house gracefully. This can be built as a slab on grade, with a step up at the (e) framed doorway, or as a framed floor. I suggest leaving the (e) exterior wall in place (but of course changing the finish to drywall). Expand the (e) windows just a bit to fit better into the cadence of the new vaulted rafters, but just make them 'window' openings with sills and no glass.
2. I suggest leaving some of the walls in this area, so that a large coat closet for family use can be located here. A smaller 'guest' coat closet is opened in the entry space.
3. Build a 5 ft. framed opening, centered on the (e) fireplace between the living and dining rooms. This will be very similar to what the inspiration picture shows.
4. This dining room comfortably seats 8.
5. This is a generous space for a U-shaped kitchen with a large island. I think the little (e) bump-out can be eliminated... it doesn't seem to add much to the space. I suggest locating the new range against an exterior wall to make venting simple.
6. 20x25 living room. This is a large space. New windows to the west should fit in between the new rafters in the roof. The door should be located along this wall to keep circulation clean, and to allow more counter space in the kitchen.
7. The existing covered deck space is nice, and as you will see in the model, it shades the worst of the summer sun's rays. The sun angles on the model are taken in the afternoon on the summer solstice (June 21).
8. Make a 'landing' outside of the bedroom doors. This one is 6x8.
9. Keep the existing bathroom the same, just improve the fixtures and finishes. This will save money.
10. Put the laundry room here, with washer and dryer against the exterior wall. As there is already plumbing in this space, and the size is right, this should be another money-saver.
11. Existing bedroom to remain the same.
12. Existing bedroom to remain the same.
13. New parents' bedroom is 12x22. Locate glass sliding doors along the west wall where the existing high window is, to make the back porch a private space.
14. The parents' bath has enough space for a generous tub/shower unit, a toilet room, and double sinks. Alternatively, you may want to use some of this space for a new furnace.
15. The (e) deck should stay the same size: 11x13.