Hi shinae, keeping things simple and de-cluttered is the key to smaller spaces. You can add bits of color to accessorize and consider furniture that serve multi-function such as dining table as office desk. Check out the following ideabooks. https://www.houzz.com/magazine/ideabook-911-how-can-i-make-my-living-room-seem-bigger-stsetivw-vs~209321 https://www.houzz.com/magazine/6-ways-to-magically-enhance-your-small-space-stsetivw-vs~165912

I think the first layout is fine. You might want to consider moving the door for the storage room of the master bedroom so that it opens into the hall. That way the kids can use it for overflow storage. Also, that hallway is big enough that I think it could hold a large armour, providing more closet space. (There's no need to sleep in the same room as your clothes, so long as they're not too far off.) Also, don't forget that while the drawing shows kids in double beds, this need not be the case, so there will be more room for furniture (dressers or whatever) in their rooms. Finally, that step to bedroom 4 will not be odd at all. I've seen it in other homes. It looks clumsy in the drawing but it isn't. What you'll see when you come up the stairs is a bedroom door on a slight diagonal. It's only an odd jagged step if you walk like a robot, in straight lines along the wall, which is what your eye is doing on the drawing but you won't do in real life.

I don't think that you will have a problem without building a study........ The extra garage space will be a valuable asset...........and can do double duty.....

You might paint the walls a bold color you really love, but I would recommend staying away from wallpaper as it is costly and too difficult to change. I agree with another poster that wider trim around the doors would help, and I would suggest that you paint all the trim white and add crown molding and a mop-board along the floor-wall junctures. I love the wood-tone door and would keep it as an accent piece and for contrast. You might add large, framed mirrors to the walls to reflect light and perhaps add a console table with a fairly large lamp. An interesting print area rug also can add pizzazz to this space. If you can use the bold wall color as an accent throughout the house, it will help to tie the entire color scheme together and give your home a unified look. In the offset hallway shown in Photos Two, Three, and Four, I would suggest you place a desk and chair and/or perhaps some bookcases and curio cabinets to make an interesting entrance way that can double as a study or home office. As an alternative, you could place a narrow dining table with leaves that fold down to allow easy traffic through the hallway. Above the table you could display some framed mirrors and, in matching frames, family photos that can serve as conversation starters. When you entertain, the fold-down dining table could be pulled out and/or moved to another room to accommodate your guests.