I think it depends on what type of personality you have regarding organization and how much you can tune out everything else. If your desk is in chaos at the brick & mortar office, if you like to chit chat and it takes you 30 minutes of getting coffee, putzing around, giving the hellos to all your co-workers on what they did "last night" then chances are you'll have a harder transition to working from home.
Ideally to have a workable home office in a part of your house that you can close off to everyone else, as if you were going "in" to the office. But with proper communication to your family as in "this is how our bills get paid" and routine, telecommuting is a very viable solution.
Another good thing when working from home is to allocate time banks for certain tasks. 30 minutes of email, then 30 minutes of working, then 30 minutes of whatever it is that you do. This gives you specific times to get things done without having to look at 8-10 hours in front of your computer.
There is good collaborative software as well that you can work with other team members virtually, work on the same documents, upload presentations, have whiteboard meetings complete with webcam so that you'd never have to have a 'real office' ever.
When I lived in Seattle I telecommuted 2 days per week and here in Vegas my house is the 'branch' office for 2 publications in the UK, a remote location for a video production company in Portland and the 'human resouces dept' for ChopsCash.
