Ah I mean plot resetting my bad. I think plot resetting requires you to make another character in your town right? Sorry I get them both confused. Thank you for your help by the way!
Yep, you're right! That's plot resetting. Plot resetting is something entirely different. It doesn't get rid of your town or change existing buildings. Instead, it changes the location of new villager houses.
Plot resetting is done when you're expecting a new villager to make a plot and you want the villager's house to be in a certain location. This can happen if you're expecting a new random villager given by the game (villagers 6-9 are random) or a villager you adopted from the campsite or another town. The idea is that when you start the game for the first time in the day, your town's "state" is randomized. This does everything from spawning flowers and fossils to setting down villager plots. When you load an existing character, the game both creates and saves that state (when Isabelle does her spiel) and is thus set in stone for the day. When you make a new character, that state is only created, not saved. Since it isn't saved, you're free to randomize this state until you find one you like and then save it.
To plot reset, you must not have logged on to any existing characters for that particular AC day (which starts at 6 a.m., not 12 a.m.). When you turn on the game for the first time, instead of logging on with your mayor/any other character, you create a new character and go through Rover's spiel. Once you get into town, you search for the villager's plot. If it's in a bad place, quit without doing anything else, and repeat making a new character/quitting until you've found a location you like. Once you find a plot you like, progress until you get the TPC from Isabelle and the game saves. Then you're free to delete the new character and sign in as your mayor, and the plot will be where you saved it.
As a side note, plot resetting for random villagers can also let you choose the villager as well as their plot. Also, campers are also included in the randomized state, so you can do what's called "campsite resetting" to try and find a camper you like. The same applies; once you find something you like, save it, and then it's set in stone.
Sorry this was a little wordy! If this also didn't answer your question or if you want me to explain it better, let me know again!