As you are well aware, you have not provided sufficient data.

Without a doubt, auction houses have proven this works. That a lower price can be suggested knowing a much higher price will be the result.

And lets not forget, it even worked for the banks regarding short sales. List low knowing the real price is substantially higher.

Without a doubt, many agents do not possess the skill, in any deminsion, to make this work and should never put their seller in jeopardy.

If the 'VALUE' is there, and the agent who has the skill, resources and knowledge, the property can certainly be sold for $350,000 and off the market in 3 days.

It's called the PLF, the elite plan in necessity home selling.

Richie Alan Naggar author of books on Life-Love-Intimacy-Purpose I don't really think so. In a bidding war, I don't think anyone is willing to pay $75,000 over list price. Investors aren't going to pay market value either.

You will end up getting true market value when the market dictates the value at whatever price.

I would not recommend this approach to pricing. It is too risky. Its even risky in a hot market, but slightly more acceptable. 

Under valued priced property is trying create a bidding war enviromnent. 

Probably not...If I could get a house at a discount price...or any buyer could why would they pay more unless they were in a bidding war ?

Regardless of the results, I would question the integrity of an agent who did this.

Depends, if it is a big city with lot's of buyers were every buyer is pre-approved for a higher amount a bidding war might get you the right price. Or only one person makes an offer. 

One of those things it could or could not, wont know until its over.