My opinion is a little swayed due to the fact that I own and operate a sod farm, but I would tear it out and sod it. Expensive in the short run. But it is well worth the time and money in the long run. Just remember Landscaping can have up to a 200% return on your investment. Seed takes alot of time and care. Sod is easy. Learn mor at my site. Clickon the little red house at the bottom of my post. Good luck on whatever you decide.