Zillow Estimates lower than asking prices?

[EastSider]

[JD@Preview]

I'm not clear on the details but didn't Zillow get in trouble earlier for overinflating values. Sellers would call the agent Zillow referred and list at these outrageous prices only to wind up lowering their expectations drastically. It's just a digital version of what less competent and ethical agents do when they go on a listing presentation; they "buy" the listing by valuing the property higher than what the comps indicate. If they get the listing the agent counts on the seller's motivation to sell to inspire him to drop the price to where it *should* have been in the first place. These guys don't usually get a lot of referrals or repeat business.