This Move Might Make Life Complicated -- but Help You Benefit From Today's Seller's Market

Sellers have the upper hand in today's housing market. Here's how to really capitalize on it.

Recently, I was minding my business when a real estate agent knocked on my door and asked if I was interested in selling my home. I won't tell you what price she offered me, but let's just say it was well above what my home would normally sell for.

Such is the case in today's housing market. Mortgage rates are so low and housing inventory is so limited that home prices are soaring. So I wasn't surprised to learn that there's a buyer out there who'd pay me a handsome sum for my home.

In fact, I was really tempted to take that offer. Only then I realized -- if I were to sell my home, I'd need someplace to go. And what I'd gain by selling my home for a higher price, I'd lose in the form of a higher purchase price for a new home to replace it.

Such is the conundrum a lot of sellers face today. But if you're willing to put yourself through a bit of upheaval, you may be able to really benefit from today's inflated home prices.

How many times are you willing to move?

If you sell your home today for $50,000 more than it would normally command, you might pay $50,000 more for another home to move to, thereby wiping out that profit. On the other hand, if you're willing to sell your home, rent a place for a year or so, wait for the housing market to cool off, and then buy, you could end up enjoying your profit.

Say that home prices come back down by next summer. If you sell your home this summer, find a cheap year-long rental in the area, and then buy a home once prices are down, you could end up pocketing your proceeds rather than handing them over to another seller. But there's a clear downside to going this route -- having to move multiple times.

First of all, moving can be expensive, so you'll need to weigh the cost of a move against the savings you might reap by selling high and buying low once the market calms down. Also, moving is a pain. You need to pack, unpack, reorganize, adjust to a new home, and then do it all over again once you're ready to stop renting and buy a new place to call home.

There's also the risk that the housing market will take years to settle, and that you'll end up having to rent for a while before being able to buy again. That means losing out on homeowner tax breaks for longer than you bargained for.

Plus, moving to a rental for a year could mean having to switch your kids' school. And that alone may be a deterrent.

As such, selling your home for a big profit, renting temporarily, and then buying again when home prices are down is a risky and inconvenient tactic to employ. But if you're up to the challenge and are willing to take that risk, it could end up paying off in a very big way. In fact, it's a route worth considering if you don't have a lot of furniture to move and if you don't have children to worry about uprooting.

On my end, I won't be selling my home in today's market because I'm not willing to rent temporarily. I have too much stuff to move, plus young children and a dog to think about. But it is an idea I've been tempted by, and while it's not the right choice for me, it may be the right one for you.