It's ok to contact them back and see what they want, just keep in mind the domain name is no longer "theirs". Often you'll get accused of registering (or worse, stealing) their domain. Hopefully that's not the case here.
Yah, make sure you dont scare away the owner. I lost a domain due to non-renewal, and althrough domain was barely worth reg-fee except to me, the guy claimed he was making a site lol and wanted several hundred for it, and turned down my $300 offer.
That was the end of it, and domain is most likely going to expire in a few months lol.
I talked with them some. They offered me $100 for the name. I told them I would get back to them in a couple of days. I was going to use this domain with a site for a family member, but I talked to them and they like another name better anyway it seems.
It is a dmoz listed name. I will probably just let them have it for the $100 I think. They also claimed they have a trademark on the name, but I think that is a bluff.
heh, what idiot lies about having a TM ~.~ I would tell them you want at least $200 for it, since they had... gah, I forgot the number again xD A couple weeks, two, isnt it? anyways, after the domain expired they had a chance to renew it and didn't.