Anchor text is the 'linkable text' seen on a web page. Traditionally blue and often underlined, anchor text is the specific word or string of words styled to indicate that clicking those words will bring the user to an additional page of content.
Anchor text should be carefully chosen to best define the content of the link to the search engines. The SEO of the receiving site (including your own) can be greatly enhanced by the right words used to describe the content.
If you have a page that describes a 3-bedroom condo for sale in the Wicker Park neighborhood, SEO best practices would say that you use varied anchor text in your links about that property that describe the property such as Wicker Park condo, 3-bedroom condo, vintage third floor condo, Wicker Park deal.
Just be sure to be accurate in your description. No user wants to be duped into clicking a link and finding the information to be unrelated, i.e, don't use "Wicker Park deal" unless it's really a deal.
Check out this blog post: How does anchor text improve your SEO?
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