Selling a home in today’s market can be tough. So, if you’re a seller, maybe it would pay to sweeten the deal by offering a home warranty. And a buyer is smart to ask for one.

For a few hundred dollars, the seller can ease prospective buyers’ worries about facing expensive repairs not covered (http://www.bankingmyway.com/real-estate/mortgages/things-your-homeowners-policy-doesnt-cover) by typical homeowner’s insurance policies (http://www.bankingmyway.com/insurance-center/insurance/your-homeowners-insurance-shape-summer), like plumbing problems, appliance breakdowns or heating and cooling failures.

While warranties have been around for many years, they are especially useful when sellers face tough markets (http://www.bankingmyway.com/real-estate/mortgages/weekly-mortgage-update-june-22), where any edge can help you land a buyer. Many real estate agents think warranties are so alluring they announce them on their lawn signs.

With home prices falling, it is especially valuable to appeal to first-time buyers, because they don’t have to sell properties before they can move on, a problem that prevents many current homeowners from trading up. But first-time buyers tend to be especially nervous about the costs and hassles of home ownership, a fear that is eased by the home warranty.

A basic plan offered by one of the major providers, American Home Shield, costs about $400 a year and covers the heating system, including ductwork, the electrical and plumbing systems, water heater, cook tops, ranges and ovens, dishwasher, ceiling fan and built-in microwave.

For an additional $150 or so, the policy can cover the central air conditioning system, refrigerator, washer and dryer and garage door opener. Pools, spas and similar amenities can be covered for about $160 each.

In a sale, the seller typically pays the annual premium and the policy is under the buyer’s name. The buyer pays service fees, which typically run from $30 to $100 for each visit from a repair service approved by the insurer.

If the sales agreement calls for a one-year warranty, the buyer should insist the seller pay the entire premium prior to closing, even if the insurer allows payments to be spread over the year. It can be awfully difficult to get the seller to pay for anything after the home has changed hands.

Your real estate agent can probably recommend a warranty company. But be sure you’re getting an objective recommendation, not one motivated by a finder’s fee the agent will get from the insurer. A list of providers is available at HomeWarrantyDirectory.com.

Also, Discover Financial Services (Stock Quote: DFS) has a useful list of frequently asked related questions on its site.

As with any contract, it’s essential to read the fine print to determine what is covered and what is not. Typically, “pre-existing” conditions are not covered, nor are those caused by the homeowner’s negligence. When in doubt, ask.

Buyers should also find out if any state agencies regulate home warranty companies in their state, then check with the agency to see if complaints have been lodged against the firm. The National Association of Insurance Commissioners has a tool for locating state insurance regulators.

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