How big is the lot? That is one of the largest contributing factors that would make me decide. What type of weather do you have? Do you want something that goes dormant in the winter or do you want something that is green year round?
No matter if you seed or sod, put in a sprinkler system if possible. Makes your life so much easier. Even in the small lots, they are worth it. Doesn't matter if you seed or sod, you have to put as much water to both without causing runoff or flood for the first few weeks.
Sod - Might cost more, but far less time waiting on a yard than regular seeding. If ground is prepped right and is level, can usually turn out better than seeding.
Seeding - Far less expensive and depending on soil content and condition, layout of yard, etc, usually easier to install. Can be harder to grow if ground is hard or sloped because of runoff. I would look into hydroseeding in this case.
Me personally - I would sod it. My experience is almost identical to WC. In Altanta, it took me 3 years to get the seed to grow to catch up to the sod. Also took 2 seedings a year covered in straw and at least twice as much water as the sod did.
