What is a Pocket Listing?

A "Pocket Listing" refers to a real estate listing that is not fully under contract yet or found on MLS, but the seller has expressed interest in selling if the right offer or opportunity presents itself. It is a low obligation way to test the market.
As the name implies, the listing is kept in the "pocket" of the REALTOR®, instead of being made fully public. These types of listing’s are marketed more privately and often just to a Realtor’s personal network, but can also be marketed publicly with the seller’s written permission.
One of the biggest benefits for a seller who treats their home as a Pocket Listing is the ability to test the market for potential interest without having to prepare or show the property. In addition, multiple price reductions on the MLS can potentially stigmatize a listing. However, if the listing is not being publicly marketed, it gives the sellers the opportunity to experiment with different price points without repercussions.
Also, a Pocket Listing gives more privacy for both the buyer and the seller. Since the home is not being listed on MLS, only the parties involved have to know that the home is even on the market. To promote a Pocket Listing, not even the address, photos or a price need to be disclosed at first.