Our exit plan is to put $$$ from the sale of the house into a conservative investment plan, put what we would have paid for taxes and insurance and maintainance into the same account. Since we planned to downsize, anyway, there should be no problem with a future purchase. Real estate prices are not going crazy again for a good, long time. We have a specific time frame of about 5 years in mind, but will extend that if things are going well or if market conditions make that advisable.
We are giving the good furniture to son & DIL. It probably wouldn't fit in a smaller place, anyway. The money we save on storage will pay for a lot of nice furniture that will fit.
This sounds like a well thought out plan to us, but so many people around us are still appalled by the risk they perceive. Personally, I think we have a good plan and don't see much risk.