Agents: When you price a relo, do you do so according to comps/market value or do you price it high so that, if a buy-out occurs, the closing price isn't below the actual market value?

In other words, say comps/market situation indicate that a relo home should be priced at $400k. You are aware that if the home receives no acceptable offers and the seller's relo company buys the home, the price to the owner would be $375k. Therefore, to ensure that the seller receives maximum dollar for the home and to keep comps in the neighborhood from being de-valued, do you initially price this home at $425k?

If so, will this inflated price affect traffic/interest in the home (given that other realtors can see that the price is out of whack)? And, most importantly, is overpricing this home in the event of a discounted buy-out, fraudulent or just smart business?

"Fraudulent" is the short answer. That said, we do give a 'range' and, of course, the seller always picks the top price even if it means slow traffic. We have that situation right now with a relo. I think they will agree to reduce price after 30 days and only a handful of showings and no offers... well, I hope so anyway.