I sold, and am renting a house about 100 times better than the old house. The family hasn't been this happy since before we bought the last house. Worked perfectly for us, and I believe it will only get better.
When the old house was overvalued about 60% from what I thought it should be valued, I knew it was time to sell.
Ok, renting MIGHT "work-out", but it might not. Why take the risk?
My neighbor told me about a co-worker who sold his house and rented. 2 years with an out of state landlord, the wife is miserable. He's doing all the repairs himself - else nothing gets done - just like before. Make a long story short, they bought back into the same neighborhood for a 100k more than they sold for. Biggest mistake of their life.
Another friend sold to move to a better school district. Thought they would find a house in 6 months. Been renting for the last year and a half. Now feels priced out of the market. Refuses to buy at these prices. 4 kids in a 900 sq ft apartment. Parents are bordering on depression. Biggest mistake of thier lifes.
Why take the chance ... there's a quality of life issue here.