Hi nohands, welcome to GS! I agree with Jerry, I think the stairway would become part of the rooms, and unify them if it were open. It really 'walls off" the space, and splits it! I also would go for another color rather than the yellow on the walls. I would do what YOU want rather than thinking about resale, unless of course you're planning on "flipping"it. I also like the floors. Good luck.
I'd definitely hang a flat tv on the staircase, and change the color of the walls because, as others said, that yellow is owful. I'd choose a bright white! I would also get rid of the fireplace which makes the whole room lokk to old- styled. But if you like the idea of the fireplace (which in itself is not an old-fashioned thing) you can replace it with a modern one.
I would tear out the wall and put a banister up to show off the stairs. I'm thinking they are oak, something we do not see in modern structures and soo beautiful. For the fireplace, I would either strip the paint off and stain it and put a picture in the frame. If it is functional, I would utilize it instead but keep in mind the insurance will go up if you have any kind of working fire inside your home. Love the floors!
I would create a wall of shelving on the staircase wall using floating shelves that mimic the shape of the staircase (larger shelves on the bottom, smaller ones on the top). Definitely change the paint color. White paint with dark wood shelves would look great. As for the fireplace, check out this link to see what this blogger did with a similar fireplace...it's pretty amazing. moderator's note: removed website link, see point 1.1 of usage rules Good luck with everything!
I agree with Rosegardens, I'd tear out the wall but since youre going for a modern look, I'd use cable rail systems instead of banisters. I used these in my house and it looks awesome. moderator's note: removed website link, see point 1.1 of usage rules
There are a lot of things you can do there. You can have bookshelves, you can put in the tv, or you can put a nice console table where you place the family pictures and place a nice mirror above it.
I think you need a bit of change for these stairs, If you will go for wooden stairs similar to floor color than it will look fantastic..!!