If you level your dirt before hand then it's not a problem. Proper prep is key in both instances (sod vs. seed).
I've seeded and it was about 10 times cheaper. I also installed underground automated sprinklers and could afford to wait around as we had no kids or dogs at the time. So it worked out perfectly and my lawn is greener and healthier than all of our neighbours' that sodded. I also make a point of feeding/fertilizing and watering it properly. Before I seeded I spread about 2-3 inches of peat moss so that the seed had something to keep it moist and it promoted good germination.
Sod is definitely quicker and it's very easy to do, but I've also seen sod jobs that look like ass 6 months later.
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