So set a high price. Problem solved. You wouldn’t be forced to sell for any less than the value you, yourself have assigned. Nobody gets exploited: people get exactly what they want.

Except that there is the tax thing which is literally designed to make people bleed money if they want to stay at place and force them to move.

See, when I am with small baby and kid has friends and I have deadlines in work, I don't want to have to move nor be suddenly force to pay much higher tax then flexible single dude who can leave easily.

But a high price leads to higher taxes. In this way I am taxed for my sentimental attachments, which seems wrong. An old man with 5 years left may have a very high sentimental attachment as he wishes to die in his 'forever home.' Should he be taxed more for that? What about a young couple who just had their first kid? Providing a sense of stability and staying in their current home has a lot of meaning to that family, should they be charged for it? A family in 2008/2009 who is making payments but barely and struggling may place huge value on being able to maintain their position as homeowners. You're going to force them to choose between much higher taxes or selling to a PE firm?

We already have a system where you can offer any property owner any amount to sell, the idea that the government should come in and shape the market in such a way that people are charged for emotional attachments and compelled to sell at a specific price is ugly. It seems wrong to shape human behavior in that way (especially for a spurious benefit) and it seems like it mistakes efficiency towards a goal for the goal itself.