What type of hvac does the house currently have? It may be most cost effective to reuse what infrastructure you currently have.

With the exception of a floating floor, floors are either... Installed first so the flooring goes under the cabinets (preferred method) -or- Installed after the cabinets are put in BUT a plywood or similar subfloor is installed beneath the cabinets at the same thickness of the finished flooring (this is also done with floating floors) - so you need to know +++++++++++++++++++++++++++++++++++++++++++++++++++++++ From an older post (applies to all flooring materials, not just wood): Ideally, the floors go down first, before any cabinets are installed. Whether the wood is installed throughout, though, depends on the floor. Is it a floating floor? If it is, then you will not be able to install cabinets on top of it. Instead, you will have to install some other material that raises the floor under the cabinets to the same height as the finished floor. Do not install the cabinets lower than the flooring - it will trap your appliances (Refrigerator, DW, range) in a hole and will make it difficult to move them. Of particular concern is any appliance in an "alcove" - like a DW or Refrigerator - with the DW the most crucial b/c the counter is installed on top of the DW with little or no vertical "wiggle room". Note: Since you can usually see several inches under the Refrigerator and Range, install the wood flooring under those appliances if at all possible. If it's not a floating floor, then installing the wood throughout is the best option b/c it allows for more flexibility and/or changes later, if desired, as well gives a more seamless look - especially under the Range and Refrigerator where you can usually see several inches underneath them. Some people don't install wood flooring under the cabinets b/c they think they'll save money in material costs. However, the extra work needed to install two different surfaces and the extra measuring/cuts will often eliminate that savings b/c of additional labor costs.

TC: they aren't trying to cheat you as the guys said. When I lived in Seattle, rates were so low that I had to call them since my first 2-month bill was $12. I thought it was a connection fee, but it wasn't. Now, your rates are slightly higher than mine are here in the East. When gas was more expensive a few years ago, the cost difference would have meant more than now. But your gas rates have probably gone down as the electric rates went up (still paying off those 5 nukes that never got built?). The Seattle area has such a mild climate (for being that far north) that heat pumps work just fine. So its not a surprise that they get recommended now that they are more efficient. (And lets not start a war over the definition of efficiency.) Another consideration perhaps. A heat pump will run year round in your location. An AC unit may only run 2-3 months in Seattle, if that much. Hopefully the AC unit will last longer from non-use. Which also means you don't really have to go with the higher SEER number since you are not going to see any ROI. 14-15 would be fine.

I like your basic concept of not building a huge-a$$ house, and using walls to separate spaces (!). It looks like you've thought about how your family lives, what sort of rooms you want. (What is an "App Closet"?) I like emilyam819's suggestion for the master bedroom/bath upstairs. My concern would be the kitchen seems small; but you could push it a little further into the family room. For the outside, think about a covered porch all along the front, all the way to the garage. You could extend the garage forward four or six more feet, and that would make the front porch a more generous, useful size. (And it never hurts to have extra storage space in a garage.) Seems like now is the time to find an architect and a kitchen designer to help make your ideas "real". Oh, and plan for solar!