You are correct in saying Trulia's estimate of this home's worth is not accurate. There must have been something in their way of calculating the value that was not entered correctly or was misinterpreted. As a realtor, when I access the public records on this home I see a Full Market Value (for tax purposes) of $656,000 and an assessment of $576,000 for property taxes. However, due to complicated rules, the tax value for SCHOOL district purposes put it at $728,000. The information I have has not bee updated yet for 2012 but there does not seem to be any reason behind this estimated value of $394,000. Even though a house of this value is not common in Albany, it still shouldn't come in this low, especially since it was just purchased with the last year for $525,000. If you are the owner, you can sign on to an account and update information about it and they may help to fix the error. Best of luck!
Licensed Real Estate Agent at Heartland Home Properties, LLC East Greenbush NY