The best approach is to spend as little as possible to make the most impact. Start with cleaning--really cleaning. Inside, that means windows, walls, closets, the fridge, oven and showers. Buyers open every door, so make sure the shower sparkles. Of course the usual tidying up and carpet cleaning are important to present a good first impression.
Declutter by putting away papers and paring down clothes (makes closets look bigger) and decorative accessories (looks clean and streamlined), and even removing extra furniture to open up rooms and make them appear larger.
Freshen things up with new paint and light fixtures--nothing screams 1992 like a shiny brass light fixture. Neutral is good when it comes to paint. Outside, power wash the driveway, do a thorough yard clean-up with fresh bark and some colorful plants. Make sure light bulbs are all working and for the purposes of presenting your house in it's best light, increase the light bulb wattage to help your home be as light, bright and cheerful as possible.
In a buyer's market, getting your home ready to sell isn't about selling for more than other, similar houses in your neighbhorhood--it's about standing out as a the best one, so yours is the house that sells.