How about some pictures?

You need a retaining wall. But first I think you should consult with a landscape architect or designer to get a plan going for what your landscape should look like. Then you can execute the plan yourselves or hire it done. Carolyn Albert-Kincl, ASID

There is nothing worse than ceiling-mounted lights--harsh shadows, flat lighting. They are strictly for utility. I would put a large-ish, shallow cylindrical shade on them and put nothing more than a 15-watt bulb in them. Use them strictly for lighting your way as you walk through the room. I agree with Vincent; the chair in the corner doesn't fit at all, nor does the one under the A/C unit (put that one with its mate behind the love seat). And the curtains look smooshed. I think the problem with the bookcases is that they are uninteresting. Did you buy books-by-the-yard? What are all those identical books? They are visually uninteresting. I'd get rid of some of them and get some colorful ceramics/glass/photos. The room is absolutely overwhelmed with furniture. It needs one less love seat. Do you really need all of them? Pushing them against the walls/curtains so tightly just visually emphasizes the fact that there is too much furniture. I don't think a mirror above the fireplace will work. When people are sitting down (which is most of the time), all they will see is a reflection of the ceiling--the plain, white ceiling. Get some real art in there with some color.

Check with your realtor about spending any money on an update. Tidy up the stuff in the corner, put the sofa next to the fireplace facing the view, angle the chair near it, and let the next people decide what to do with the space. Some people will love the wood, others won't, but don't try to guess. You could spend a small fortune on new flooring only to have it ripped out as people make the space their own.