How can I optimize this small space to make appear larger??
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Why would she want to paint in colors that someone might like to change? Color choices are personal and they are trying to sell the property. Go with white.. Use color in the furniture and accessories to brighten it up. Area rugs to denote each space. Is this a condo? Other people had some good ideas for the "rooms". Good luck and have fun doing it. You can still get creative without doing things someone may want to change. Hey, maybe the buyers will want to keep the furniture!!
Here's a great article on organizing a small space - https://thehousemode.com/how-to-decorate-a-small-space/
From it, I realized that it is important not to clog your walls and keep everything clean. Also use small plants to free up the room and green it up a bit. Use transformer furniture or hidden cabinets to make the space more functional
Small furniture, Mirrors Colourful Art should do the trick.