The 23-year-old country singer was spotted house-hunting in the Connecticut-Rhode Island area with her parents and brother earlier this month.
According to TMZ, Swift managed to negotiate the $20 million asking price down to $17.75 million.
Swift had previously purchased a Cape Cod-style home near the Kennedy compound in Massachusetts, prompting gossip-mongers to speculate that she wanted to be closer to her ex-boyfriend Conor Kennedy.
She brushed aside the rumors in a March interview.
"I apparently buy houses near every boy I like," she quipped to Vanity Fair.
Swift eventually sold the Massachusetts home for a $1 million profit.