Did you know that most first-time homebuyers don’t overpay because they are “stupid”? They overpay because they negotiate with zero pricing clarity.
The worst part? Most people don’t even realize they’re being played.
Here is the problem you face:
You visit ten flats in the same area and get conflicting information:
* Builder A:** ₹1.50 Cr (Premium project)
* Builder B:** ₹0.85 Cr (Urgent sale)
* Builder C:** ₹1.20 Cr (Last price)
Naturally, your brain asks: “What exactly is the market rate?”
Most people do the “normal” thing:
- Add all the prices together.
- Divide by the total number.
- Get the average.
- Assume that is the market rate.
But real estate pricing is not a clean “average” market. Property prices always have outliers, such as premium overpriced quotes, distress/urgent sellers, and random inflated numbers. An average gives you a single number, but effective negotiation requires a range.
The Method I Use
As a civil engineer and management graduate, I will teach you this concept using a simple example. Before anyone claims “this is AI,” let me be very clear: This is NOT AI.
While AI can generate content and reports from companies like Microsoft suggest that copywriting jobs can be easily replaced. AI cannot replace original ideas, analytical skills, or human thinking. If you ask an AI for a negotiation range based on a price list, it might give you a number, but it won’t clearly explain how that range was derived. You would still be negotiating with weak confidence.
That’s why I use my own method: Quartiles (Q1, Median, Q3).
This approach comes from my own analysis. Most first-time buyers never think about this, and the majority of people don’t even know this method exists. Please respect the effort involved instead of labeling everything as “AI.”
The Quartile Method (Simple Math)
Step 1: Pick one micro-market
Example:Mumbai – Kandivali – 1BHK
Step 2: List the prices from properties you actually visited (for example I assume random prices)
A: 1.00 Cr
B: 1.50 Cr
C: 0.80 Cr
D: 1.20 Cr
E: 1.10 Cr
F: 0.90 Cr
G: 0.95 Cr
H: 0.99 Cr
I: 0.85 Cr
J: 0.92 Cr
Step 3: Instead of an average, calculate three specific values:
Lower Quartile (Q1):0.8875 Cr
Median (Q2): 0.97 Cr
Upper Quartile (Q3): 1.125 Cr
What these three numbers tell you instantly
Think of it like a “price map”:
Q1 (0.8875 Cr) = Lowest realistic deals
This is the zone where the cheapest 25% of deals exist. If you are looking for the lowest possible negotiation, this is the price point you should aim for.
Median (0.97 Cr) = True market middle
This represents the most “fair” price for the locality.
Q3 (1.125 Cr) = Premium ceiling
This is the upper band of the market. If a builder quotes a price above this, you now know for certain that you are paying an extra premium.
Why this is better than an average:
An average gives you one misleading number. Quartiles provide a pricing band:
Q1: The lowest realistic deals (the cheapest zone).
Median:The fair market middle.
Q3:The premium ceiling.
Now you know exactly what is cheap, what is fair, and what is overpriced in that specific locality.
If you are a first-time buyer, stop negotiating emotionally. Don’t rely on the “average.” Use quartiles so you can clearly see the lowest band, the fair band, and the premium band.
That is how you negotiate like a pro.