Take-home tests are great! All I have to say on this topic is, this is your chance to prove your mettle on your terms.
Nobody watching over your shoulder scrutinizing each thought and line of pseudo-code. No interactive tap-dance like the kind in face to face onsites. You get to iterate, test, pretty-fy, document, and package the hell out of it. Give it all you have.
Why an entire blog post for this? Because it is that valuable in the candidate's interview process and will only grow in favor with hiring teams.