The breezeway, if enclosed, is spacious enough to be a very nice entry foyer, with coat closet, a little sitting area for receiving guests, an elegant table where callers may leave their cards, and maybe some room to open up whatever is cramped about the passage to the living room. If the back back deck is right behind the breezeway, you could have French doors opening to the deck, for light and a view of the beautiful plants. Perfect for cocktail parties. We have an entry room, not near as nice as you could have, and there is something luxurious and even a bit grand about not walking straight into the living room. Outside the new exterior door, there should be a transition space, a deck with shelter from rain, then stairs. The deck can be bordered with bench planters, outlined with lighting. The door should have some depth, not just a featureless rectangle on a flat wall. You could really transform the look of the house. As a realtor (?) you can surely see the potential. If you're architecturally inclined then fire up a CAD program, if not then I'd consult an architect.
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