Choosing color for the walls of a smaller room can be a delicate decision. Most people agree that lighter paint colors reflect more light and therefore create the illusion of a larger room. In terms of color, go with a monochromatic theme. Then, if you have trim, paint it an even lighter shade than the wall. This technique causes the walls to appear farther away than they really are. Crown molding is a great option in terms of trim because it creates the illusion of a higher ceiling by drawing people's eyes upward. If you're ambitious, another way to make ceilings appear higher is by painting vertical stripes on the wall.
This may seem counterintuitive, but when staging your furniture, larger pieces create the illusion of more space in a room. An increased number of smaller pieces make the room appear cluttered and they create more wasted space. If you choose to use larger pieces of furniture, stage them diagonally in the room. The longest line in your room is diagonal, and by placing furniture in this position, you're showcasing the length of the room's imaginary diagonal line. Keep furniture from disrupting natural walkways and the flow from room to room. Tables with clear tops also create the illusion of more space. In terms of décor and accessories, reduce clutter as much as you can—more floor space lends to the appearance of a larger room.
Hanging mirrors on the wall can create the illusion of a larger room. Utilize mirrors in spots that need expansion. For example, if you want to lengthen a hallway, place a mirror at the end of the hallway. This makes the hallway look twice as long as it really is. Another technique is to place a mirror behind a display of flowers. The mirror doubles the amount of flowers in the display.
Once again, when lighting a room, look for as much natural light as possible—specifically larger windows and skylights. If this isn't an option, try and illuminate all four corners of the room. Darker edges and corners make rooms look smaller. To create the illusion of a higher ceiling, install wall sconces that reflect light up toward the ceiling. This technique vertically elongates the height of the wall.