If ever there was a home buyer's market, it's today. Houses are plentiful and interest rates have plummeted. Before buying, however, make sure that you're practical as you pursue the American dream. Use purchase agreements, inspections and disclosures to protect yourself. California law outlines what buyers and sellers are obligated to do as part of a transaction. Before you begin your home search in the Golden State, become familiar with the process.

Working with an Agent
While some people can handle the entire transaction on their own, others would rather work with a Realtor or broker. A trained agent can calculate what you can afford, help with negotiations, and make sure the proper documents are completed. The California Department of Real Estate's website provides more information.

Foreclosures or Short Sales
Sometimes bargains can be found in homes in foreclosure or whose owners are on the brink. Though foreclosure auction rules vary by county, the differences are not all that significant. The high bid always wins, and the property is sold 'as is'. In a short sale, the home is sold for less than the seller owes on the mortgage loan. The mortgage holder must agree to the sale, and the buyer and seller can't have a close family or business relationship. In California, a mortgage holder must respond to a short sale offer within 21 days. Additionally, banks have to give owners a month's notice if foreclosure is imminent and if short sale options are available.