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Tú casa es grande.
The difference between "tú" and "usted" depends on the formality. "Tú" is used <u>when talking to friends or relatives (informal)</u> while "usted" is used <u>when talking to older people or a person of high social rank (formal)</u>.
In this case we want to write the <u>informal</u> form of "tú", so we use "tú". Also, when dealing with <u>permanent states</u>, the verb "ser" (to be) is used.