This project uses linear regression to estimate the values of houses based on a dataset containing the sales of houses in Ames, Iowa, between 2006 and 2010. It evaluates major factors affecting house prices, formulates several regression models, analyzes them using MSE, R-squared accuracy metrics, and derives conclusions about other meaningful variables including size of the living area and square footage of the basement. These results are important for the buyers and sellers of real estate along with realtors who are trying to comprehend the realities of the market so that they can better manipulate the strategies for valuation of their property.