It is never good when Zillow price is below the actual paying price. Zillow makes up the price by referencing the average price per sq feet in the proximity. It is true that Zillow knows nothing about the general condition of the house and its interior. The house could be made of gold and justifies its asking price. But would you really want to buy such a "gold" house while all other houses in the area are made of "silver"? Zillow is not everything, but it is a good estimator. My little aptment in NJ is priced much higher in Zillow than I would get if I sell it today. The house just bought I paid 10% less than Zillow's estimate. I would never pay more for a property than Zillow suggests, only less.