How do I Evaluate Land for Purchase?

[Matt Lennander]

Xcel Energy is selling vacant lots in my area and I looked in to buying one, but they want about $117k for just the land to build on. I talked with a home builder and you would about break even after building and selling (at least the way the market is right now). 

My question is, how do I evaluate the land and negotiate with the selling agent? This is a bit beyond me at this point, so I don't know if I'll try but wanted to get the opinions of all you smart investors.