Well, we bought our couch at Macy's and we're very happy with it. You may be able to find one under $1000, but we paid more and got a nice, ample, quality piece of furniture. We've been down the Ikea road -- which can be unsatisfying quality/durability-wise, and I've had my fair share of used/free couches. I can say that I felt like we got our money's worth buying a new, well-built sofa.
The upsides of Macy's are their sale discounts are good (keep an eye out), you can sign up for a Macy's credit card and save another 10% by buying your sofa on their card, they offered a 0% interest plan for a doable time frame, their customer service is excellent, and they'll deliver it.