You are right, it is very important to give the buyers great first impression, especially in a difficult market.
If you have the means, perhaps you can redesign the front yard, get some professional advise and plant some drought resistant plants and accent it with flowering plants at strategic places.
You can then use the fact that the garden is designed with water conservation in mind as a selling point, along with the great curb appeal, hopefully it will add incentive to buyers.
Do the other homes in your area have the same type of problem? Are all the lawns suffering or does yours really stand out? Have you considered hiring a lawn company to assess your lawn's condition and see what can be done? They can provide you with the proper products to use in your area, for your type of lawn, at this time of year.
If your lawn is a concern to you as a seller, then it will most likely be a concern to potential homebuyers, also.
Best wishes and good luck to you in the sale of your property.