This is the standard approach, but if the soil conditions in your garden are not ideal, for example, you have compacted soil, then you should consult a gardening and landscaping professional with lawn expertise to really give your lawn a fresh start.
You mentioned that your lawn was yellowish in colour: one cause of this can be too much moisture in the soil.
As a general rule, a "perfect lawn" requires a sufficiently sunny location, suitable soil and continuous expert lawn care!