In the sales comparison approach, what must you multiply by before adding adjusted sales prices?

In the sales comparison approach, the correct process involves using a correlation factor to ensure that the values derived from the comparable sales accurately reflect the subject property's market value. The correlation factor adjusts the sales prices of comparable properties to align them more closely with the characteristics and conditions of the subject property. This adjustment is essential because it accounts for differences such as location, size, amenities, and condition that can significantly influence property values.

By multiplying the adjusted sales prices by the correlation factor, appraisers can make a more precise estimate of the subject property's value, enhancing the reliability of the analysis. This ensures that the resulting figure is not only reflective of the comparable properties but also tailored to the nuances of the specific property being evaluated.

Other options do not accurately describe the necessary element in the sales comparison approach. For instance, a weight factor is often used in statistical analysis to give different emphasis to certain data points but is not a standard term in the context of this approach. Value estimation generally refers to the overall purpose of the appraisal but does not specifically pertain to adjustments in the sales comparison method. An adjustment ratio, while relevant as a concept, does not capture the function of correlating the prices of the comparables effectively as the correlation factor does.