I think you got your own advice. Sometimes, it doesn't make sense to build on a piece of land. City fees, County fees, school fees, misc development fees as well as wet and dry utility installation costs will determine if development makes sense or not. Believe it or not, even if the land was free, sometimes the cost of building a house doesn't pencil. Why build a house that will cost you $200,000 if it could only sell for $175,000.