Your nerves are doing you a favor. Keep listening to them and lease rather than buy – I would think the current owners would have a hard time getting a good leasee due to the size of the place, so that is a negotiating factor in your favor as well.
Zillow tends to run high – it tracks sales after they are finalized so the figures are usually several months old. Check the direction of the arrows on the chart for that house to see the general direction of pricing – most of the charts are heading south and looking like tech stocks in 2001 / 2002. Those charts always make me feel better about renting.
