Right Move suggest that her house when purchased at 1.35 million should now be worth 1.499 million, due to house prices going up and all the other stuff that affects property prices, but I reckon this is not the case for her house and she will struggle to get what she paid for it, because the only improvements are cosmetic, and people will always change decor. They and surveyors factor in having to replace a shed, no garage, two bedrooms that need converting from useless dressing rooms to Bedrooms. At least 2 and probably 3 bathrooms that don't work.
Is there a bathroom on the top floor where the dressing rooms are? If so, then you could make that the master bedroom suite and keep one dressing room and make the other a bedroom and bathroom en suite?
I don't think the bathroom of one of the guest bedrooms works, and what about the toilet in the basement, does that work? the gym and the bar rooms are good selling points but you would not have those in a bungalow with only 3 bedrooms. The layout is not good for a family I don't think, who would want a master bedroom next to a Kitchen, and if you have a baby, where could the nursery be, a guest bedroom, but that is down the hall! Really not sure who that house would appeal to, and that is why I think it is not as marketable as she thinks!