Ask two or three real estate agents the same question. If anything, they would prefer to sell at the higher (improved) price. That said, the increase to them is only their percentage of the improvement. They are far more in touch with buyers than readers here. If they say to sell unimproved, they think that there are sufficient buyers willing to defer the improvements, or control of the improvements is important.
If they say to make the improvements yourself first, ask why. It is likely because most buyers want to move in without needing to do the necessary contracting and have the inconvenience of waiting or living with work being done.
Finally, if you choose FSBO, you are taking the position that you know as much or more than they do about the local real estate market and are able to reach as many or more prospective buyers and can filter buyers better. If that is true, I think you probably would not have been posting this question here. The number of real estate agents available to represent you is far higher than one.
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