A builder wants to BUILD not just resell homes. Think of it as an artist...He doesn't want to resell the canvas he bought for $20 to get $25, he wants to work to increase the value and make money on the finished product. The big money is in the build and the better the lot, the better the chance of him/her reaping a big reward. Bottom line...he marks it unreasonably high so you either buy it outright at a ridiculous price and he is okay with it or they show you how affordable the finished product will be and you contract with them to build.
Either way, it sounds like you have found the hardest part of the equation and that is the perfect location. If you want to have a strong negotiator on your side to get the most house for your dollar, I would be happy to help.
Wishing you the best,
Mark Atteberry, SG Priest Realtors
Delivering Personal Service with Exceptional Results