Re-Set Town? Demoloish your house?

Riagan

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Can anyone tell me what exactly happens when you select re-create the town? do you start your game over or do you just get a new town map with the same villagers and different trees?
and what about when you demolish your house?
 
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When you demolish your house, unless you're playing as the mayor, only that player is erased from the town, but the rest stays as is.

When you re-set your town or choose to demolish your house as the mayor, and carry through with it, your entire game will be restarted. New player, new town, new villagers, and all. There is an option to some players who have played a certain amount of time (you can do this if your town tree is large enough to sit on), where they can "sell" their town to Nook. This is offered when you choose to restart your town, and all that changes is that you will start the new town with a certain amount of money in your ABD (however much your old player's belongings + town were worth), and your catalog remains the same--besides this though, the town and your progress are gone.
 
Resetting your town gives you a completely different town, as you are starting a new game. Everything will be altered including your villagers. Demolishing someone's house will delete the character, their house, and all their items. Both of these are permanent actions and cannot be undone.
 
If you can start a new town with however many millions, I suggest taking the Lump Sum. I also suggest not selling your catalog. When you go through the new town’s map options, I suggest finding one with characteristics you want. (With me, and that I will be restarting a given town, I want a continuous beach.) You don’t establish getting a new town, and erasing the one you’re eliminating, until your new town’s mayor gives Isabelle one’s birthday and the game does a save. After this, any additional human characters will get some Lump Sum move-in bells as well. You can use them to move in incoming villagers, withdraw their bells from an ABD, deposit on the ground for the mayor, eliminate that human character, and repeat the process.
 
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