Hi Betsy
Zillow and sights like it take a zipcode average price approach at times, and are not always reliable. I would reccomend working with an Agent and they are able to access information that is accurate and help you determine an acurate price range based on all information available not just sold price per sq foot.
Michael

Why do you think the prices are low? Zillow is generally unreliable though in this case, the prices are fairly accurate. According to the MLS listings, 2 are correct. One listed for $669k on Zillow is actually listed for $699k. Listed price per sq ft ranges from $266 to $295. I don't think these townhouses are priced low--they haven't sold at the asking price and all were reduced from the original list price. Prices are determined by what people are willing to pay. Looking at recent previous sales is the best indicator, especially in a buyer's market. In a desirable area such as Chapel Hill/Carrboro, price is also determined by some intangibles.

The two previous answers are right on target. You should avoid Zillow and other sites like it. They do more harm than good.

Zillow "estimates" are often not very accurate as they pull from tax records and other sources with an automated approach that is almost always VERY outdated. For a much more accurate estimate of a home's value, you are best off having a real estate professional give you a price opinion based on comparable, recently sold homes. Most agents can do this and provide a simple Comparable Market Analysis, or CMA. For my clients I take this to the next level and provide a Priving Valuation that not only uses the comps method, but a number of other models to arrive at potential home values and also pulls in historical data to calculate actual appreciation rates and to see where your home might fit in. I also provide a thorough Risk Analysis that shows you, based on live MLS data, the importance of pricing right, the tolerance for pricing variances for your specific location and the potential cost in actual dollars of pricing too high and being forced to reduce prices. I'd be happy to review some samples of these with you and see if I could be of help. The other thing I suggest is that you sign up for a MARKET SNAPSHOT, which will show you data on active listings, but also actual data and details on recently sold listings near you pulled live form the MLS and this custom report can be sent to you every 2-8 weeks to keep you on top of the market and help you gain fact based insight into the value of your home. Follow the link below for a sample analysis and signing up is free, no obligation. Let me know how I can help!

Most "zestimates" on Zillow are low. They take all sales and average them out. They don't factor in condition, amenities, location etc. If there are any short sales or foreclosures in the area, they will be factored in by what ever price they sold for not adjusted to be comparable with a non distressed property. There are a lot of factors that go into price a home. Zillow just gives you an idea of what prices may be in an area.