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To change your choice of Linden Home type, you must abandon your current Linden Home and then register for a new one.

 To abandon your Linden Home:

 

  1. Choose World > About Land and click the General tab.
  2. Click Abandon Land
    After you confirm your choice, the land is removed from your account.

 

Now if you wish, you can register for another Linden Home.

 

32px-KBwarning.png Warning: Please use this reasonably: if you abandon and choose a new Linden Home five times in 24 hours, you are temporarily blocked from choosing another. You will need to wait 24 hours before registering again.
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To change your choice of Linden Home type, you must abandon your current Linden Home and then register for a new one.

 To abandon your Linden Home:

 

  1. Choose World > About Land and click the General tab.
  2. Click Abandon Land
    After you confirm your choice, the land is removed from your account.

 

Now if you wish, you can register for another Linden Home.

 

32px-KBwarning.png Warning: Please use this reasonably: if you abandon and choose a new Linden Home five times in 24 hours, you are temporarily blocked from choosing another. You will need to wait 24 hours before registering again.
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To add to Griffin's answer and responding to your query on getting land instead, yes, you do have the option of free tier for 512 sq.m. rather than choosing a Linden Home but you have to buy the land and a house to put on it yourself. Unlike a Linden Home, the house will count against the 117 prim limit. If you wish, you could buy a larger parcel but then tier kicks in so for example 1024 sq.m. will cost you $5 per month but you will have 234 prims to play around with.

http://secondlife.com/land/pricing.php

http://community.secondlife.com/t5/English-Knowledge-Base/Buying-land/ta-p/700043

If you decide to buy land, you should first abandon your Linden Home or you will be charged tier for all purchased land.

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