Generally speaking, the US Copyright Office's terse answer is a complete reply: the copyright of the photo belongs to the photographer. The owner of the property may also have some rights which could limit the photographer's commercial use of the material (including, for example, selling it to you).
I know one old photo seems like a little thing and it seems like the photographer could be more flexible, but consider that that's how he is making his living, and it's not really an easy way to stay afloat. The pricing reflects that. And, take a moment to consider the fact that you want this photograph demonstrates that it does have value.
If you need photographs of your work, you could hire your own photographer, or do it yourself (which, for great results, is harder than it looks). If that seems expensive or troublesome, that gives you an idea of what the existing photo might be worth. If, on the other hand, that'd actually be easier and cheaper than the offered price, then you can just solve the problem that way.
In general when approaching a deal with someone, you need to consider your best alternative to negotiation. If you can't get this picture for what you want, what will you do instead? How much will that cost you, and will it provide the same benefits? This will help you both know what you can offer, and give some perspective into what is reasonable. If it turns out that the photographer's idea of reasonable is still far from your alternate options, walk away happy.
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