What Jamie said. Unless you use the chair to watch TV. Right now, the chair is blocking entry into the room and the couch and chair are both too far away from the TV. So, TV to the left of the fireplace. Sofa facing the fireplace. Chair on the right of the fireplace. Bookcases on the wall opposite the window.

TV is mounted right in the traffic path from the front door. I would have put it where the bright pink picture is. Worth the expense of moving TV connections and repairing the wall if you own the home. Your coffee table is too big. It should be 2/3 of the width of that seat section of the sofa. Are there actual records stored in the record cabinet? I might think of storing liquor there so I could eliminate a piece of cabinetry. You could replace 3 pieces (liquor, record and TV piece) with one long piece for that wall above the dog bed. Let it do triple duty. Sell the other pieces on Craig's List and get a new coffee table. Eliminate the end tables; they aren't needed if you have a coffee table. Or you can eliminate the coffee table too and just do some "C" tables. Improve the view from the entry, and find another place for the kitchen trash can. Wall hung items should center 5' above the floor of hang 5" above furniture. Here's a chart for correctly mounting the TV. Sofa can be turned to face it with its back to the window. You can pull it forward for best viewing and add a sofa table behind it.

I think the sectional is just too bulky for the room.. would it be that bad to leave the TV over the fireplace? what are the actual room dimensions? If you hang the tv on the short wall you need to have a way to watch without straining your neck.. what is the width of the room from fireplace (with the hearth) to the wall? option 1 - get rid of the sectional (yes it is comfy but bulky) and put a sofa facing fireplace, get 2 swivel chairs (recliners or not) to either face the tv on short wall or swing around and face the 'people' sitting on the sofa and a narrow ottoman for additional seating.. sketch the room on grid paper with as exact dimensions as you can.. option 2 - leave the TV above the fireplace but i would still replace the sectional with a sofa and chairs so you have more walk through space and the ability to move the chairs if you need to.

Do you see potential problems with the couch/sectional not providing a lot of space between the hallway and the room? Or perhaps I need to find smaller furniture or move the couch closer? I think the previous owners also made the room a dining room, which is why the chandelier is there. However, not pictured is our kitchen that openly connects to a room with a fireplace, and we're planning to make that room the dining area. Thank you for your opinion!