Till the soil to a depth of 6 to 12 inches. Remove debris such as rocks or wood.
Level the soil. Leave the soil a little higher close to the house foundation, and slope it as you get further away from the house to provide drainage away from the house.
Test your soil to see if soil amendments are needed.
Add compost or manure, turning it over into the soil 2 to 3 inches deep. Add additional nitrogen-phosphorous-potassium fertilizer as the soil test indicates. Add pre-emergent herbicide such as atrazine to prevent weed growth.
Install irrigation if desired.
Do a final grade with rake, making sure soil level is even.
Mark a center line on the area and lay sod along the line in both directions close together.
Roll the sod with a lawn roller.
Keep sod moist for 10 to 14 days to allow roots to establish.