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Apart from offering less,what are my options?
Offering more and offering exactly the asking price :)
As @pdlouche intimates, work out how much you actually want it and make an appropriate offer.
Former colleague asking if I want to buy a domain we bought and worked on together (though at the time he bought it under his name only so he's got the keys) for much £££. I want the domain but have no desire to part with such £££. Apart from offering less,what are my options?
He could let it lapse and I could put some kind of reserve on it through a domain service? Would he know it'd been reserved?
I could employ a third party to make a lowball offer and I could tell him myself that I have no interest. Other?