Can someone make my paragraph sound better and maybe add on to it. the question: is the house of usher truly a haunted place or is it only the imagination of those who are there ?

I believe it's just in the imagination of those who are there. The narrator never mentions anything specific or usual things like ghosts or monsters. The narrator himself is contradicting himself in the story so he might not even be reliable. Sometimes if a place seems
scary or haunted your mind will play tricks which is what I think started to happen. I think the narrator knew that Madeline was alive without knowing at the same time and knew the consequences if she was, so he was scared with guilt from that too. He slept in a room right above the vault where she was buried so he must have heard her banging and struggling to get out and instead of thinking she was alive he thought she was a ghost.

In my opinion, the House of Usher is not haunted, but rather, the characters are just freaking themselves out. In most instances, if a building or area seems  scary or haunted the mind will play tricks. I think that this is what began happening. The narrator never mentions any specific or usual things like ghosts or monsters. The narrator, himself, contradicts several things that he had already said in the story. So, it is fairly safe to say that even he is not a completely reliable source. The narrator knew deep down that Madeline was alive and knew what would come if she was living. But, because he was so frightened by the thought of this, he managed to convince himself that she was just a ghost.

I think this is good, but I've never read the story. I'm just going off of what you said. (I have written many papers, and gotten 100% on them, when I didn't read the whole story.)