List house higher or lower than value?

[Jacquelyn Umof]

I'm helping to sell my grandmother's house, and one real estate agent I interviewed said she thinks we should list it at the highest price possible (1.45M), and that we could always bring it down. Another agent said she thinks we should list it low (1.1/1.2M) to build demand and have them out bid each other. I personally don't think it's a 1.4M house and worried we'll need to do a price cut, decreasing it's value. The house is desirable 3Bd/3Bth Laguna Niguel neighborhood, excellent schools, valley view, in good shape but not updated. Thank you in advance for your thoughts!