You need to project your data (eg. UTM) and ensure that your X, Y and Z values are all in the same units (eg. meters)
The z units are most likely meters and your UTM should also be meters, unless they have been modified. Have you tried ground truthing against known elevations like benchmarks? As long as the units are the same you should be fine and a z factor will not be necessary. If you have feet elevations then the issue will still occur.
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