You are making a number of assumptions here, any of which could prove unfounded. The Zillow Zestimate is probably heavily influenced by the 2006 sale price.
I took the liberty of looking this property up in the public records. It is reported as a yr2005 home of ~3,800 SqFt on a relatively small (11,400 SqFt) subdivision lot. The other properties on this block were all built between 1920 – 1950 and represent a wide variety of ages and sizes. So we aren’t talking about a custom home on a large lot that is part of a conforming tract of similar homes. This thing is an orphan.
According to the public record – which may or may not be accurate – there are no sales of similar age within the prior year within a 1 mile radius. Again, public records reports only 2 sales of comparable age/size in the city of Glendale within the last year and a total of 5 such sales going back as far as 04/2005. Those 5 sales demonstrate a range of about $1,100,000 – $1,650,000. As far as I can tell all of these other properties have lot sizes that are larger; the two higher priced homes are on 1 acre lots and may have a view amenity.
I don’t know how much this home is worth, but I don’t see any data that would make obvious a conclusion that this home was EVER worth the $1.9mil. Based on what I’m seeing I wouldn’t even assume the recent sale price at $1.15mil is crazy-low. Bear in mind, we don’t even know what kind of condition or buildout this property currently has. If – as sometimes happens with foreclosures – this home has been stripped of its interior or squatters have taken up residence that bid might be very fair. Or not. My point is that we just don’t know and we can’t tell from here.