Answer: I don't think you will need to tear up your entire lawn to improve it, but I will suggest aerating it this spring. A core aerator will remove one inch by three inch plugs from the lawn. Leave the plugs on the lawn and they will dissolve in rain or water from the sprinklers. After aerating spread a thin layer of sand or compost over the area and water it in well. The sand or compost plus the soil from the plugs will work their way down into the holes left by the plugs. You can then overseed your entire lawn and it should green up and remain green for you. Best wishes with your lawn.
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