Home sellers who think an improving real estate market means they'll do fine selling "as is" are sadly mistaken, says Eric Tyson, co-author of "House Selling for Dummies."

"Even in a hot market, people who are too lazy or cheap to do the fix-ups their real estate agent recommends always wind up leaving a lot of money on the table," says Tyson, a personal finance expert.

Granted, as the economy strengthens, more homebuyers have cash to spare for home improvements after purchasing a place. Yet most people are loath to buy a home that needs immediate improvements to make it livable.

Tyson says nearly all homes need improvements to enhance their salability -- even if those fixes involve only cosmetic issues like dirty carpets or leaky faucets.

Despite improvements in housing markets, the supply of contractors still exceeds demand for most types of work -- including basic painting, cleaning and carpet replacement. That's because the home-improvement field is still populated by many who lost jobs during the financial crisis and then went into business for themselves.

But competition for the best contractors isn't limited solely to home sellers. It also involves homeowners who don't plan to move but need help with big remodeling jobs.

Harvard University's Joint Center for Housing Studies is now projecting an increase in remodeling spending, as more distressed properties come back onto the market and more owners of baby-boomer age are retrofitting their homes to suit senior living.

"What's unfortunate is that more quality contractors who would have gladly done small jobs during the recession are now limiting themselves to big contracts. That makes it harder to get help for small repair jobs," Tyson says.

Here are a few pointers for sellers:

-- Ask your listing agent for contractor referrals.

Experienced real estate agents who are active in their profession typically maintain an up-to-date list of trustworthy contractors -- including plumbers, painters, electricians, carpenters, carpet installers and roofers.

Such a roster can be hugely helpful to sellers who need repairs and upgrades done quickly and competently, Tyson says.

Many contractors seek to please agents because they represent the prospect of a steady stream of repeat business. This makes the contractors on an agent's list more accountable.

-- Meet face-to-face with contractors before hiring them.

These days, an increasing number of people believe they can make all arrangements for home improvement work solely through email, fax or phone. But Judy Luna, a veteran real estate agent affiliated with the Council of Residential Specialists (www.crs.com) says there's no substitute for a face-to-face meeting.

"You won't get an accurate estimate of the cost of the work unless the contractor comes to your home. Also, meeting one-on-one gives you a better feel for the company," says Luna, who adds that it's also important to check references.

"Word-of-mouth is always your most important guide," Luna says.

-- Seek your contractor's promises in writing.

Tyson says that homeowners too often make agreements with contractors based on verbal promises -- even on large jobs. But he says it's crucial to obtain a written contract that covers all the major aspects of the work—including scope, timing and price.

Given that the timely completion of work is one key to the success of your home sale, he urges you to put into your written agreement penalties that would be imposed in the event the contractor fails to finish on time. You might also consider incentives for early completion of the work.

"You don't want the contractors to delay your job because they come across a bigger or more lucrative project," Tyson says.

He says you'll also want to include in your agreement language indicating that the contracting firm guarantees its work and carries all the proper insurance coverage on its employees and subcontractors.

-- Don't let contractors skip government inspections.

Not all home repairs or upgrades require that contractors obtain a government permit to make sure the work complies with local codes. For example, an electrician usually doesn't need a permit to change a light fixture and a plumber typically doesn't need one to install a new water heater.

But major projects are a different story. Examples could include the installation of a new bathroom or deck.

You might think you'll get a better price from a contractor who asks to circumvent government requirements. But Tyson says that sellers who seek to skirt the law could put themselves at risk of a lawsuit by those who buy their home.

"Contractors don't enjoy having to get permits or to have their work inspected. But you still have to be sure they meet all the necessary government laws and codes," he says.

-- Don't pay for the whole project at the beginning.

You might find it necessary to make a partial payment to a contracting firm at the outset before its work begins. This is especially likely if the contractor faces significant material costs to get your job going.

For example, you could be asked to make a partial payment for new carpeting before installation occurs. Or you house painter might request that you cover expenses for paint, rollers and brushes before work begins.

But Tyson says you should resist paying for the entire project, including labor costs, until it's all done.

"Once the contractor is fully paid, you lose all the leverage you'll need in case something goes terribly wrong. So resist paying for as long as you can," Tyson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

She was a successful boutique owner of 31 who yearned to leave her solid-yet-not-spectacular house in a middle-income neighborhood for a larger, flashier place in a prestigious suburb. But six months after making her dream move, her original house still languished unsold without so much as a single nibble.

Desperate to sell, she hired a different real estate agent who determined that although the property was correctly priced, it was poorly presented. The new agent recommended she hire Michelle Minch, a home stager, to help the place capture buyers' interest in an improving real estate market.

Following Minch's advice, the owner arranged to repaint the interior and replace worn carpet. After that, the stager and her team brought in two truckloads of attractive furniture and accessories -- including sofas, lamps, chairs and artwork -- and arranged all the items to make the house seem spacious yet comfortable. The project took a full, intense day of work.

Once the makeover was done and the home relisted, it garnered three offers and sold within just a week. This seemingly miraculous outcome allowed the owner to quickly liquidate her equity and move on with her life.

"She was totally thrilled with the staging and wondered why she didn't do it sooner," Minch says.

As the owner of an established staging firm called Moving Mountains Design (movingmountainsdesign.com), Minch is accustomed to compliments from her clients. But many stagers lack a proven track record and disappoint their clients, says Barb Schwarz, founder of The International Association of Home Staging Professionals (iahsp.com).

Schwarz says the easy-to-enter home-staging field is attracting several thousand newcomers each year. Some are fans of TV programs on home renovation and decorating. Others come from interior design backgrounds, yet often lack an in-depth grasp of home-selling psychology.

"There's a big difference between staging and interior design. Staging involves depersonalizing a home to appeal to the largest number of buyers. Decorating is about personalizing a property to the taste of its owners," Schwarz says.

-- Consider more than one stager before making your selection.

"Lots of people think they can go directly into home staging because their neighbors and friends tell them they have a good eye for decorating. But there's a lot more to staging than they realize. A good stager has gone through a lengthy training process," says Minch, who entered the field after a previous career preparing sets for TV commercials and movies.

She advises those planning to hire a stager to interview at least two or three candidates before selecting one.

"Be sure to see the stager's portfolio of work. Also ask for the names and phone numbers of past clients," says Minch, who publishes her own home-staging blog.

"Remember that you're hiring a stager to help market the largest single asset your family owns. What's crucial is that the stager knows how to appeal to a big audience," Minch says.

-- Make sure you understand how a staging firm prices its services.

Schwarz, the author of "Staging to Sell" and other books on the topic, says serious home-staging firms operate in a businesslike manner. One sign is that they can accept payments either by credit card or check. Another indication is that they carry business insurance and are willing to show you written proof of that.

After visiting your place, a serious stager should give you a firm quote on the full cost of staging it. This is helpful, as Schwarz says, because by bidding on the whole job, you're protected from the risk of facing higher-than-expected hourly fees if the job takes longer than anticipated.

-- Limit your costs by doing part of the work yourself.

Hiring a professional stager can be expensive, especially if your place is large or vacant. Staging fees -- which range from $500 to $5,000 -- can come as a shock to those who have little or no equity in their property but still need to sell it.

As Schwarz says, you can reduce the cost of a stager's services by doing some of the labor yourself. Rather than asking for the stager to do the full project, request a consultation. This should cost far less but should yield a written report itemizing the specific steps you'll need to take to prepare your property for showtime.

"The report should tell you the paint colors to use, the type of carpet to install and which furniture to remove. It should also tell you how to reposition the remaining furniture and accessories," says Schwarz, who's staged homes since the early 1970s.

Alternatively, you might decide to limit your staging expenses by sharing the workload with the professional you hire.

-- Make sure the staging work is complete before going onto the market.

Although homes in many neighborhoods are now selling more quickly than in recent years, real estate specialists say it's as important as ever to stage your home well. One factor is that homebuyers are becoming more educated visually because many are watching more TV programming focused on interior design and renovation.

Minch says those who ensure their home is in excellent condition before it hits the market stand the best chance of receiving strong offers without a lengthy wait.

"Remember that selling a home is like entering a beauty contest. The most attractive contestants win," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Like giant vacuums, investment companies have been buying up vacant homes in recent months -- often negotiating rock-bottom prices in exchange for speedy, all-cash sales.

"Investors are purchasing lots of foreclosed properties, often at huge discounts and right on the courthouse steps. If a home's location is favorable, they'll even risk buying it sight unseen. Then they'll fix the house up for quick resale at a huge profit," says Ashley Richardson, a veteran real estate agent.

Granted, not every neighborhood has leftover vacant homes still going through the foreclosure pipeline. Some areas have become so competitive that nearly all the distressed properties have already been taken and multiple bids for the remaining stock are common.

But in many other neighborhoods, savvy and tenacious homebuyers can still snag a decent deal on a vacant property -- one with good bones that needs only cosmetic upgrades to regain its luster, says Richardson, who's affiliated with the Council of Residential Specialists (www.crs.com).

According to Richardson, the key to finding a bargain among vacant homes is to look for one that lacks the kind of staging that would show off its visual potential.

Merrill Ottwein, a real estate broker and past president of the National Association of Exclusive Buyer Agents (www.naeba.org) estimates that 80 percent of vacant properties now for sale are in fair to good condition. But he cautions that the rest includes "dregs" that have been neglected or abused by their owners.

He urges those considering the purchase of any vacant home to make sure they're getting a true deal rather than a money pit that could require large amounts of cash to bring it up to a livable standard.

Here are a few pointers for homebuyers:

-- Seek out information on a home's former occupants.

It can be hard to obtain details on a property that's been vacant for months if its owner has moved to a faraway state. It's still tougher if the home has fallen into the ownership of a bank.

"Sometimes agents clam up about a home, especially if there's negative stuff in its background," Ottwein says.

To find out about the history of a vacant property you like, he says your best sources are often neighbors.

"It's advantageous to find out if the people who lived there were fastidious about upkeep and had pride of ownership," Ottwein says.

-- Think about a "pre-inspection" of a vacant place.

Has a vacant property you like gone unsold for so long that you're nervous about hidden problems? That being the case, you may not wish to bid until you can garner more information from a home inspector who takes a preliminary look at the place.

Ottwein tells the true story of a client who was so worried about a crack in the foundation of a colonial-style house that he spent $200 for an abbreviated home inspection. The inspection revealed that the crack signaled a serious problem with the home's foundation. Knowing that, he walked away from the colonial and bought a nicer house in the same neighborhood.

"The sooner you know about any serious problems with a property, the quicker can you walk away and find something better," Ottwein says.

-- Make sure the utilities are on when an inspection is done.

Dorcas Helfant, a former president of the National Association of Realtors (www.realtor.org), says cost-conscious banks that own residential property often turn off the utilities, including gas, electric and water, to save money. But without functioning utility services, home inspectors find it hard to perform their job, she says.

"With the utilities off, you really can't tell if all the systems are working properly," Helfant says.

Even if you have to pay to get utility service restored for an inspecction, she insists it's worth the expense.

"Make sure your utilities are on or your home inspection could prove worthless," she says.

-- Review neighborhood sales before making an offer on a vacant home.

"It doesn't take long for the buyers' agent to assemble information on neighborhood sales. With just two or three clicks, we can find out the price history of the 20 properties closest to the home you like," Ottwein says.

He says that ideally you'll want to review at least three similar properties that have sold in the immediate area in the past three to six months, adjusting for differences, such as a larger garage or a second fireplace.

It's always wise to take a home's condition into account when judging its market value. But Ottwein recommends against seeking out-of-proportion discounts to compensate for relatively minor flaws, like a bedroom painted an unpleasant color.

"Don't get carried away when judging these small issues," he says.

-- Keep your emotions in check when bidding on a home you love.

During the recent financial crisis, many vacant properties owned by banks were given extremely low prices to clear inventory. And while banks are now pricing many repossessed homes more realistically, Ottwein says it's still possible to find a bank-owned home marked below market.

He says the current risk for many buyers is that -- knowing they're likely to face competition from other bidders -- they'll overshoot a property's true market value to beat out rivals.

"If you're crazy about the house, you'll be especially susceptible to overpaying for a property. So keep your emotions under control," Ottwein says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)