FIRST AMENDMENT TO LEASE SECURITIES ESCROW AGREEMENT

Exhibit 10.3

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (“Agreement”) dated May 26 , 2005, is made and entered into by and between Multi-Employer Property Trust, a trust organized under 12 C.F.R. Section 9.18 (“ Landlord ”) and HouseValues, Inc. a Washington corporation (“Tenant”).

BACKGROUND

A. Landlord and Tenant entered into that certain Lease Agreement dated November 1st, 2004 (the “ Lease ”), for approximately 65,469 rentable square feet of space (the “ Premises ”) located at 11332 NE 122 ^nd Way, Kirkland, WA 98034, commonly known as Building A-2 of Kirkland 405 Corporate Center, and as more fully described in the Lease.

B. Exhibit G entitled “Landlord Improvements” was attached to the Lease.

C. Landlord and Tenant desire to revise Exhibit G as set forth in this Agreement.

D. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Lease.

AGREEMENT

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereby mutually agree as follows:

1. EXHIBIT G: The Exhibit G attached to the Lease is hereby replaced in its entirety with the Exhibit G attached to this Agreement.

2. 2004 OPERATING COSTS: For Year 2004, Controllable Operating COSTS, grossed up to include all additional costs and expenses that Landlord reasonably determines would have been incurred had one hundred percent (100%) of the Building been occupied at all times during 2004 by tenants, were Three and 96/100 Dollars ($3.96) per rentable square foot.

3. LIMITATION ON INCREASES IN CONTROLLABLE OPERATING COSTS: Notwithstanding anything in this Lease to the contrary, increases in those Operating Costs or Project Operating Costs that meet the definition of Controllable Operating Costs shall not, in the aggregate, exceed the following per rentable square foot:

4. AUTHORITY: Tenant represents and warrants that all necessary corporate actions have been duly taken to permit Tenant to enter into this Agreement and that the person signing this Agreement on behalf of the Tenant has been duly authorized and instructed to execute this Agreement. Landlord represents and warrants that all necessary company actions have been duly taken to permit Landlord to enter into this Agreement and that the person signing this Agreement on behalf of the Landlord has been duly authorized and instructed to sign this Agreement.

5. FULL FORCE AND EFFECT: Except as expressly modified above, all terms and conditions of the Lease remain in full force and effect and are hereby ratified and confirmed. Landlord and Tenant hereby acknowledge and agree that, except as provided in this Agreement, the Lease has not been modified, amended canceled, terminated, released superseded or otherwise rendered of no force or effect.

2

Attachment to Lease Amendment

EXHIBIT G to Lease

LANDLORD’S IMPROVEMENTS

The following describes the items for which Landlord will contribute a separate allowance amount in the amount of Eighty-One Thousand Five Hundred Sixty-Four and No/100 Dollars ($81,564.00) (the “ Landlord Improvement Allowance ”) to compensate Tenant for having Tenant’s contractor install the Landlord Improvements. Tenant will retain Tenant’s contractor to complete the following Landlord Improvements. Landlord will pay Tenant or Tenant’s Contractor for the cost of such landlord Improvements once they have been substantially completed upon invoice by Tenant. Tenant shall be solely responsible for the workmanship and for completing the work so as to satisfy Tenant’s concerns in these areas. Once the Landlord Improvement Allowance has been transferred to Tenant, Landlord shall have no further obligation with respect to the specific items listed below prior to the Commencement Date; however, nothing in this Exhibit G is intended to limit any of Landlord’s representations or obligations in the Lease.

Tenant has agreed that Tenant will review and repair, if necessary, the first floor server room condenser ventilation issues at a later date. Landlord makes no warranty for the condition of the condenser units or the connected Liebert units on floor 1. The engineering team has recommended that the condensing unit issue be resolved at a time when it can measure the effect corrective action will have on the units. Upon Landlord’s payment of the $81,564.00 to Tenant, Tenant shall relieve Landlord of any further obligation established by Exhibit G and Tenant shall assume the responsibility for resolving the condenser unit ventilation issues in the future.

Work to be funded: