I don't even know if I've been in hawkhart residence but I'm sure I have. If your attacked by a mage then I have. I just can't find that dress though if someone could tell me how to I would be happy.

It should be there somewhere. Look into his body or stuff in the floor. Also check the attic.

I think I'm looking in the wrong house. Also how many stories are on this house too, if its three or two something like that cuz I can't find the dress.

Quests have randomly-selected locations from thousands of houses and dungeons, so we can't help you to actually find the house. It sounds like you're having trouble getting there. Verify the city (journal entry or a note, I can't remember) in which the target house resides, and when you arrive, ask the townspeople to mark it on your map. Or you can wander around the city clicking on houses in "Info Mode" (F3) to identify them quickly.

Well what I believe to be the house holding this dress is a house with "nothing of value in it" I mean I've checked every other house around it and I think I know whats what. Though I was attacked by a mage in one house and I also saw a pile of lundry but it kept saying "You are too far away" I mean I might just start I new game I did nothing special so I don't think it will be a problem.

Fear not, a house "with nothing of value" never has a quest objective inside, for the simple reason that it has no inside. Maybe if you were attacked by a mage inside of a house, you failed the quest, since I think it involved doing your work undetected. Stay in sneak mode inside houses next game?