Historically, it would be a 50/50 proposition;
you can please half the people....
Lately, the preponderance of evidence would lean toward doing the work:
It seems a great many buyers are stretching it to just buy the darn place; they have no money left over to update it.
In order to combat this, the Lenders have come up with fix-up piggy-back loans and allow the borrower to get up to 125% of the appraised value.
Of the two, the trend is to look for homes with the work already done.
If you can afford it, do it, and do it neutral.
If you can't afford to do it right, don't do it at all.