Don't let people scare you. The "norm" is just an "average" of the research that's been done over time on chilren's progress. Kids speak at different ages. I'm not saying that late talkers never have an underlying problem, but I AM saying that I think society puts too much worry into our heads if our children aren't doing exactly what other kids are doing.
My son was the EXACT same way. I went through all the endless worrying, all the tests, and in the end my little boy is a little genius. I had a couple of friends tell me not to worry about his lack of desire to talk, but it's hard when you have people saying that you need to have him tested and stuff. According to the "norm", a child is supposed to know 50 words, not 200 like someone else said, at age 2. I know this for a fact because I still have all of the paperwork from first steps and it plainly says 50 words at age 2. Well, if they know about that many words, they're fine. It doesn't mean they have to "use" all of those words on a regular basis either, it only means that they "know" and are willing to say them if enticed to. Try to do something where you have him say words if you're really worried. Like point and say "look! Tree!" and ask if he sees another one. You can do this with many objects. My son didn't start really talking until after he turned 3. He just wasn't interested in talking the baby talk. He waited until he could basically say complete sentences. If he wanted to say something, he would, like you said how you're little guy would say if he wanted something. Other than that though, he just didn't want to. He turned 3 in December and just since then is talking plain as day and using complete sentences. He is starting to read already and can write all his letters. Kids are all different. Some kids are verbal, some aren't. My son wasn't verbal. He would rather sit and play with letters and numbers than sit and talk to someone. Please, trust me, don't get too worried. I know it's hard, I was there a year ago. It's not anything to worry about though until I'd say he's 3 1/2 and still not talking. You can have his hearing checked and stuff if it makes you feel better, and even have him evaluated for first steps if it makes you feel better. My son was denied first steps because he knew enough words, even though he didn't use them regularly. Just remember that people are always going to compare your child to their own or what they've heard he should be doing at his age. That doesn't mean that there's a need to worry though. I have so much trouble keeping up with my little guy that I'm now teaching him states and capitals to give him something new to learn! He's way more advanced than my little girl, who started talking at about 1 and is now almost 5. Your son is just fine, you'll see!!
Also, first steps is not free. If my little boy would have met the requirements to receive therapy, we were going to have to pay around $20 a week if I remember right. It's based off your income. It's free if you make under a certain amount, but anything over that amount it's broken up into amounts due based on wages.