A market situation in which a scarcity of goods or services available for sale makes competition among buyers fierce. Selling prices are driven upwards and sellers reap strong profits. It contrasts with a buyerÂ’s market, in which there are many products or services to choose from and prices are driven down, which potentially can depress profits.

A lump sum that the seller of a house pays to the buyerÂ’s lender in order to reduce the cost of the loan to the buyer. The creditor may require the seller to pay some of the points. Also, the seller may do it voluntarily in order to make certain the buyer can purchase the property by reducing some of the closing costs and thus the amount of money that a buyer has to have upfront. One point equals 1 percent of the loan amount. SellerÂ’s points typically are paid only if the seller is anxious to sell the house.