I'm the near opposite of ehBeth on all this.
Not a point in ehBeth's post, most of the paintings up in my house are by definition for sale - on my to do list is a new series of photos of them to send to art dealers around here.
I haven't been in many paintings myself, but there was one big one (that one not a nude, heh - I finally tossed the nude self portrait that was a class assignment, something like 3' wide and 6' tall pastel on paper, and I never did hang it anywhere...). The big painting, 4 x 5 feet, was done by my business partner in my first gallery back in the seventies. A few months before she died (she knew she was terminal) she asked me if I wanted it and I said no. We had a tiny house, I hadn't fixed up the garage yet, it was not a good storage place, yadda yadda.) Now I'm sorry I said no, dammit. Not because I want it, even now, but because it would have meant something for her for me to have it. Dumb I was.
I've done a few paintings of friends, one in particular I like from a photo I took at a girlfriends' birthday party type lunch where the one throwing the party told us about this new dance step, the hustle. So we all learned it, thus the photo by me of three of them dancing. I can still hear that music in the background. That's on one of my bedroom walls and isn't at all creepy to me.
On my bedroom walls - two big nude portraits from my advanced painting classes; two small paintings of friends including the one I just mentioned; and.. now this is a little creepy, but it amuses me, an old photo of my grandmother in, probably, the 1890's. It all pleases me. I put paintings anywhere I want, and often change them around. And on photos, my hallway is chock full of photos from my life, both of people and of landscapes.. plus a little art work.
so, I think we're all different - and I would not be freaked at seeing a portrait of someone in the house in the living room. From comments on a past thread, though, perhaps by Boomer, I remember a lot of people are uncomfortable about that.