The post is a little light on details, so I'm taking some liberties here. . .
Just because the website for a domain doesn't have anything unique or interesting on it doesn't mean the owner is a cybersquatter. The owner could just as easily be using the domain for e-mail only. Or for un-Iinked web pages for personal (or private business) use. I own several domains like this. Public websites are only one single (potential) aspect of a domain. It could legitimately and happily be used in other ways. Or maybe he really plans to put a site up some day but hasn't gotten around to it yet.
My advice to the submitter is to first and foremost keep these things in mind. Unless you know for certain the domain is being squatted on, don't approach negotiations from that standpoint.
I would suggest deciding up front what the domain is worth to you. If you're eventually unable to agree on a price in that neighborhood (or below), you need to be prepared to move on. You have no leverage. Period.
If you're unwilling to move on, then clearly the value you initially placed on the domain is too low. Just because you don't want to pay more, doesn't mean you're entitled to get it for less. The domain is worth exactly what someone who wants it is willing to pay for it. Not a penny less. Not some arbitrary "fair" amount. That's how free market economics works.
Start by soliciting an offer. Do your best to get the owner to throw out a number first. If you absolutely must make the first offer, start low, but don't be unreasonable or insulting. I wouldn't expect any half-decent domain to go for less than $100.
Pretend you're buying a used car and you should make out OK.
A tangential issue is to CYA after an agreement is reached. Take the necessary steps to protect your payment and ensure full transfer of ownership.
LG.