Deciding between timeshare cancellation vs resale can be a tough choice. The best way to exit your timeshare depends on several factors, including the type of timeshare you own, your reasons for leaving, and your financial situation. You might wonder if your resort has an official exit program or if you can sell your timeshare to get some of your money back. In this guide, we’ll walk you through trustworthy, developer-approved options to help you exit your timeshare. Let’s dive in.
What Is Timeshare Cancellation?
Canceling a timeshare can be tricky. It’s not like unsubscribing from Netflix, where you can just click a button. The cancellation process varies by developer, and sometimes it’s not even an option. But when it is, it’s often the quickest and easiest way to get out of your timeshare.
When we talk about timeshare cancellation, we’re referring to developer-backed programs like Vacation Club Solutions or internal-exit programs. These can include things like deed-back programs or the various consumer support programs companies like Wyndham and Westgate offer. The exact mechanics of the programs will vary, but they tend to have a few things in common.
- They’re predictable: Timeshare cancellation programs follow a clear and predictable timeline, and the best part is you don’t have to find a buyer. Once the process is complete, you’re officially free.
- They’re (mostly) guaranteed: If you qualify for timeshare cancellation, that’s it. You’re completely free from your contract. There’s no back-and-forth negotiation, and it’s very unlikely that things will fall through. It’s a simple case of you either qualify or you don’t.
- They’re not always an option: Keep in mind that not all timeshares offer a cancellation program. For example, if you’re trying to get out of your Disney Vacation Club timeshare, you’ll have to resell it instead.
- You won’t get money back: Don’t confuse these with refund programs. In fact, you’ll usually have to pay a service fee to use a cancellation program.
Timeshare developers don’t always advertise their exit programs, so we always recommend calling your developer as your first step.
What Is Timeshare Resale?
If canceling your timeshare isn’t an option, the resale market offers a reliable alternative. Since timeshares are considered real estate, they can be bought and sold just like any other property. While this makes reselling one of the most dependable ways to exit your timeshare, there are a few important considerations to keep in mind.
- Resales can be unpredictable: Unlike cancellations, which follow a fixed timeline, reselling a timeshare hinges on finding a buyer. The speed of this process depends entirely on the demand for your specific timeshare, and you remain responsible for all maintenance fees until the sale is complete.
- Resales can fall through: Resale transactions involve negotiation and include a rescission period for the buyer after the contract is signed.
- Resales are almost always an option: With only a few exceptions, almost any timeshare can be sold on the resale market.
- You’ll recoup some money: While you may not recoup the full purchase price, selling your timeshare allows you to recover some of your investment. Furthermore, since the buyer typically covers any transaction fees, you won’t incur additional costs during the sale.
Licensed real estate brokers like Fidelity Real Estate specialize in timeshare resales, and our specialists can guide you through every step of the process.
Choosing Timeshare Cancellation vs Resale
Deciding between timeshare cancellation and resale depends on your individual circumstances. However, it’s generally best to pursue official channels first, as this is often the fastest and easiest path. However, there are quite a few reasons you might want to go for resale instead.
As mentioned, cancelling a timeshare isn’t always possible. While many companies claim they can get you out of your contract, you should only trust developer-backed methods approved by ARDA. This typically involves contacting the developer directly, but our partners at Vacation Club Solutions can also assist.
VCS partners with timeshare developers to offer safe and legal exit solutions. The initial step is confirming your timeshare’s eligibility, as not all developers work with VCS. If your timeshare qualifies, VCS will guide you through the cancellation process. If it doesn’t, you may still have options and should contact your developer directly. However, be aware that many timeshares lack an official exit program.
Even with an official exit program, you might still find the resale market more appealing. The primary motivation is financial: selling your timeshare allows you to recover a portion of your initial investment. It’s important to remember that timeshares are not financial assets; like a car or boat, they depreciate once purchased. Nevertheless, you can still get some money back, especially if you own a high-demand timeshare, such as one from the Disney Vacation Club.
The other benefit of resale over cancellation is that resale usually comes at no cost to the seller. The buyer is traditionally responsible for all closing costs, though some sellers choose to cover them as a show of goodwill, or to make their listings more attractive. The catch is that you’re still responsible for paying annual dues while the timeshare is on the market.
Choose Timeshare Cancellation If…
- Your timeshare offers a developer-backed exit program.
- You want to be free of your contract as soon as possible.
- You don’t mind paying a service fee for a guaranteed exit.
Choose Timeshare Resale If…
- Your developer doesn’t offer an exit program.
- You have a timeshare in high demand.
- You want to recoup some cost.
Identifying Timeshare Scams
There are a few bad actors in the timeshare exit industry, but with the right know-how, you can protect yourself from scams. Knowing what to look for is your best defense. When you understand how reputable companies operate, you’ll be equipped to spot suspicious activity and make choices with confidence.
One of the biggest red flags to watch for is a company asking for large, non-refundable upfront fees. Trustworthy exit programs will use an escrow account or charge you only after the service is complete. Another warning sign is if a company promises they already have a buyer for your timeshare, but doesn’t have a real estate license. That’s not how the process works. Only licensed brokerages can legally handle these transactions. Also, be cautious of any group that tells you to stop paying your maintenance fees. Taking that advice can hurt your credit and lead to foreclosure, so it’s always best to steer clear.
It’s always a smart move to stick with ARDA-recognized companies. These organizations put your protection first with transparent processes you can trust. Want to dig deeper into how to keep yourself safe? Check out ARDA’s Coalition for Responsible Exit. The more you know about scams, the better you can spot and avoid them, giving you the confidence to move forward.
Timeshare Cancellation Vs Resale FAQs
Timeshare Cancellation vs Resale: Take the Next Step Toward Financial Relief
Whether you choose timeshare cancellation or explore the resale market, you’ve got flexible, supportive options tailored to your unique situation. The right path depends on your goals and what you want from your ownership experience. By partnering with trustworthy and transparent experts, you can be confident in your decision and set yourself on a path toward financial freedom and peace of mind.
If a quick and guaranteed exit sounds right for you, why not take the next step? Head over to Vacation Club Solutions and try their free eligibility quiz to see if you qualify for the FastTrack program.
If you’re leaning toward the resale market, there’s plenty of expert support waiting for you. Contact a Licensed Real Estate Agent at Fidelity Real Estate for a complimentary one-on-one consultation. An agent will guide you through your property’s value and answer any questions you may have.
