Could this be a 3 or even 4 bedroom home?

Karen,  Do you have any photos you can share of these rooms in question?    It sounds like in the room on the third floor it would be costly to convert the unfinished attic space into a closet.  The lower level family room sounds like it lends itself well to being converted into a bedroom with a sitting area (??). Again, hard to say without seeing pictures.

I agree with Nancy, if we could see some pictures that would really be helpful. I am also leaning towards the basement as the third bedroom.  The upstairs sounds like a second living room more than a bedroom. Could this be marketed as a mother/daugher?

Karen,

Let us see the pictures when you get them and we can be of more assistance.

A curtain across the small kitchen might work and could add some colour/interest to the room.

Can a room not just have an armoire in it for a closet?  IKEA would have units that could be added for clothes storage.

I think you have a 3 bedroom home at least.....maybe 4.

Karen ~ When my son was in college, our home of 3 levels had a room on the lowest level that sounds very similar to the one you described.  It was a large room with great windows, a door to an outside patio, a nice closet, and it's own bathroom.  It also had a small wet bar and mini-fridge.  This was a great bedoom and he loved it!  He could entertain friends there as it was large enough to hold a queen bed, a sofa, an extra chair, and all the TV/electronic gear.  I think a room like this would be very appealing to a buyer with a teenager or college student, or to use as an in-law option.

Karen...pictures would be great....I tend to go the opposite direction and would stage the "loft" as the bedroom and call it a "multi functional loft space".  I just did a home that had a loft off one of the bedrooms.  I set it up as another bedroom.....and we called it the LOFT/Playarea!

Hope that helps!

... pop the pictures up and I'm sure you'll get some great comments :o)

Cheers Karen !

I agree with Maureen.  The room with bath and lots of space could possibly be your answer for another bedroom with the least amount of work and alteration.  

Karen, I'd go with the third floor.  We see a lot of loft bedrooms here in DC, and there are ways to create privacy - often the room is high enough above the living room that it's not even a gigantic issue.  If not, I've seen Japanese screens, French doors, etc.  Sounds like a wonderful place, and it's possible that the buyers will actually want the loft space as kick-back-watch-TV-and-play-Monopoly space.