When you prepare to sell your home, it seems as though youre besieged by decision after decision. Making decisions are difficult at times, especially when they come in droves.

However, this is one decision that is fairly up front and simple. One reason for that is because the benefits far outweigh the negatives.

But before we get into the positives and negatives, lets find out just what a Home Warranty is.

A Home Warranty provides security against damage or loss of the major systems of a home - electrical, plumbing, heating and cooling, appliances, and more. Basic plans usually cover the basic systems, and you have the option of adding in, say, your swimming pool or your appliances for an additional yearly fee.

Different companies vary in price structure, so its good to shop around. The yellow pages will give you listings of home warranty companies. You can also check with major heating and air conditioning companies in your area. Some of these will have contracts with the home warranty companies, and youll be able to track them down this way.

Its always good to check out their record with the Better Business Bureau or with local real estate companies.

Okay, back to the one negative.

The one negative is that it takes a few dollars away from your net profit when escrow closes. Usually between $275 and $450 depending on whether youve added in some optional coverages.

At the same time, its quite likely that these few dollars resulted in a quicker and more profitable sale. And time, as you know, translates into dollars

You almost always have the option of paying up front or when escrow closes..

Buyers are much more comfortable purchasing homes with Home Warranties. They know theyre protected from any major break-downs, and this is a huge impetus for a confident purchase on their part.

You pay only for the up-coming year. If the new buyers wish to continue, they carry it from there. If a problem arises, the buyers will pay a deductible of around $25 to $50 to the company, and then the company will send out their approved repair companies to handle the problem.

Fear is one of the most active killers of real estate transactions. Fear of some major fix-it expense is a huge one for buyers. Eliminate that fear with a Home Warranty, and youre providing a wide open door to a quick sale.