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I recently read that when you are selling a website in a Forum such as SitePoint, Digital Point or Namepros, it is not a good idea to display the actual website URL that is for sale? Instead one should mask the URL? This is seen from an SEO point of view? Apparently, due to search engine associations, it can influence future conversion / traffic for the new owner? Please explain this gobbledigook to me?

It doesn't matter, if you show your website url with complete URL or with anchor text. Surely some one has miss guided you. As i am an SEO and i know it is not a red sign.