One is the list or asking price and the other is their ‘zestimate.’ The latter is their algorithmic estimate of the home’s market value. The former is just what the home owner is asking for.

When you list your home for sale they put that price at the top. That doesn’t necessarily impact their estimate which moves to the bottom of the screen.

While I wouldn’t entirely trust the zestimate I think the valuation is decent. Zillow seems to estimate on the high side while Redfin is on the lower end.

I’d be surprised that Zillow underestimates by the amount claimed in the OP.