Potential butter of a home, charge him a premium?

A neighbor has been looking for a home nearby his daughter which is my neighor. From what I've heard, he's been outbid on other home(s) nearby. If we reach out to him, is it fair and legal to say, "we'll sell the home for 420k" if not, well just put it on the market? I understand if it does not appraise for that much, he'll have to pay out of pocket for difference, if he even has 30k to pay for the premium of what he is looking for. Thoughts?

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