A method for transforming seismic surface waves into depth profiles of dynamic properties of the soil such as the soil shear modulus or wave velocity or wave attenuation. The invention uses seismic data recorded preferably with a plurality of sources and receivers with a two-stage inversion approach. First, variations in surface-wave waveforms are decomposed (303) into surface-consistent transfer functions preferably for each source, each receiver, and each small region (301) of the surface. Then the transfer functions for each region are inverted (308) to determine soil properties or near-surface properties (such as the shear modulus) as a function of depth. The method can solve for the complex multi-mode nature of the surface waves for a media with both vertical and lateral changes in properties. Errors and limits in resolution for traditional methods from misidentification of ground roll modes or from assuming laterally uniform soil properties are avoided.