Why is Zillow wanting to buy a home with no margin?

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Here is an interesting question.

Zillow is offering to buy a home of mine for $227k and they said I would walk away with $211k

A neighbor with the same floor-plan, same property sqft, no upgrades like mine, just sold three months ago for $208k per the Zillow website

Why would Zillow pay me $211k out the door for my home when the comps show they are worth about $208k? They couldn't flip my home.

What is Zillow's strategy?