Which of the following best represents a property characteristic evaluated by the market approach?

The market approach to property valuation primarily relies on the principle of substitution, which posits that a buyer would not pay more for a property than the cost to acquire a comparable substitute. Therefore, the best representation of a property characteristic evaluated by this approach is comparable sales. This involves analyzing the sale prices of similar properties in the same area that have recently sold. These comparable sales are crucial for establishing a fair market value for the property being appraised.

In contrast, other factors such as the potential for appreciation (which reflects future value expectations), rental history (which pertains to an income approach focusing on past income generation), and the cost of repairs (which is typically considered in cost approach assessments) are not directly indicative of current market value as deemed by actual transactions. While these factors may influence or correlate to value, they do not serve as direct measures in the market approach, making comparable sales the most relevant characteristic evaluated in this context.