Transaction Costs

See: Alligator Spread. See: Deadweight Loss.

When you transact, there are costs just for buying the house. Or the stock. Or the whatever. You have the commission you pay to the people who encouraged you to buy. You have closing costs; like...those roof drains have to be cleaned, and oh, what about 12 grand for the termite damage? And taxes.

Bought that house for $200,000 twelve years ago, and now selling it for $500,000? You'll pay $25k ish in commission...say, $20,000 in fix-it closing costs...and then something like $80,000 in taxes if you don't buy another home or qualify for the exemption.

Big money. Big costs. The headline doesn't say it all.