Just by looking at the picture that area looks really dry and it looks like there are rake marks from where you tried to loosen up the dirt. I would recommend that you water this area either in the morning or in the late evening for the next few days. Make sure that the area gets a good soaking, to allow the water to get deep in the soil. After the soil has softened up then you can sod the area.

Hope you didn't really water 'every day'.

I suggest you read material describing what water does to grass roots. The general rule of thumb for the amount to generate good quality grass growth is 1" per week....rain notwithstanding.

Imagine how much you have put down on the ground.....watering every day.

Read further material on how water encourages growth....or, contrary, prevents it.

Too much.......is by definition....too much!!
Too little causes short grass roots.....too much, causes short grass roots.
To describe this further----if you own house plants, you know that watering a plant far beyond the capability of the plant to take it up, causes the leaves to die. Same goes for grass roots. They are unable to take in all the excess and soon they die.

You have put too much water onto the ground in an attempt to force it to grow. grass.
Instead of watering, I suggest you do an aeration of the whole area. Aeration equipment can be rented at a rent-all store and the dealer can describe what it will do.

Secondly, inject some compost or triple-mix, into the soil.
It need not be dug in. Lay one or two inches over the area and let the worms take it down.
What this will do is re-invigorate your soil which will encourage moisture retention---you wont have to water as much, and invite worms to come ---and stay.
Next, over seed, using the best quality seed you can afford.

Gardeners know that carrying out a program of over layering of quality soil (compost) over the lawn every spring, then doing an over seeding, produces good quality turf.
Usually 1" is all it takes.
To find out how much soil you will need....simply measure the area's length X width...in feet....and multiply that by the depth (1") in inches.....then multiply that by 3....and divide by 1000. The resulting figure will be the exact number of cubic yards of soil to buy.

About grass seed. Poor quality grass seed will not grow in the best of soil---but good quality grass seed will grow in the poorest of soil.
Follow the proper steps to bring the grass seed to germination. Don't water too much.

Once your grass is about 2" - 2 1/2" high, mow ...but leave the clippings on the lawn.
Afterwards let your lawn grow to a height of 3"...and cut only 25%, leaving the clippings on the lawn.
High grass growth shades out weeds---denies their germination of their seeds. It may not look as formal, but soon you'll see the benefit.

Water only the 1" per week. Do not water sporadically.....trying to obtain the 1" over a period of days......do it all at once.
This produces deep grass roots which can then defend themselves against the summer heat.

Are you sure you don't have grubs? This looks just like our backyard did a couple years ago when we got them, and like almost every other home in our neighborhood last year!

I'm still trying to fill in the bald spots that the voracious little b@$#@^s left behind!

@Texas_Tifway No, its not a rake, that is from the sod that they layed down I believe, i guess it was suppose to be biodegradable.

@Goren
What happened was when my stepfather bought the house, they layed sod down, we watered it all the same, the front yard is nearly lush, but this side all died out,

How long did you water it every day? Like weeks and weeks?

How long did you water it every day? 30 minutes? 5 minutes?