Difference With a Distinction
My hunch is that most people (including Realtors) don’t know the difference between “bay” and “bow” windows — and therefore use the terms interchangeably.
For the record, “bow” windows are curved (like the bow in “bow and arrow”).
By contrast, “bay” windows have a series of (obtuse) angles (that is, between 90° and 180° — the other kind is called “acute”).
The common denominator?
Both types of windows open up a room by admitting (much) more light — and carry a premium price.
P.S.: If you need a mnemonic (memory aid), think of the “o” in “bow”: curves, not angles. Trick #2: two bows back-to-back make an “O.”