If you were selling your house ...
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I would ask your Realtor as to what they think might help you sell. Sometimes a coat of paint will help without much cash outlay. Chances are that you would not get your money back on some fixes.
I would just make sure it's nice and clean. You could remodel the whole house, but you could also have someone buy it and re-do the whole thing. I would replace/repair anything that needs to be. Not everyone has the same decorating style. Paint all rooms the same color an off white or light taupe. Clean cabinets, windows, doors, etc. Don't put more into it than you will get out of it. Just make it look presentable.
Painting walls is almost always worth the investment, especially if you're switching from dark or unusual colors to light neutral tones. Spending just a little money on curb appeal (planting colorful flowers, mulching beds, power washing siding and/or decks and patios) also provides a lot of bang for not many bucks. Other changes may not be as cost effective, though if you do make improvements, it's usually best to concentrate on updates to the kitchen and baths.
As Elizabeth says, ask your realtor for pointers--a fresh pair of eyes may see things about your home that you don't.
yes
Make it look as good as possible and make sure that everything works. If you are going to do renovations think first of the kitchen and bath rooms. Keep your color schemes neutral. Do not over improve it, keep in mind how it fits in the neighborhood. Look at other homes for sale and see how yours stands up to them as the competition.
No major improvements. Just the basics. Agree with fresh paint. Neutral tones. Clean carpeting. Replace outdated kitchen and bath fixtures. Remove clutter and any personal knick knacks. Curb appeal lures buyers in. Flowers in pots, fresh mulch, bushes trimmed, grass mowed.