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Yes, it is challenging to score in the 40s in verbal. A 40 is about the 89th percentile - so only 11% of all test-takers are scoring that well or better.
If you do have deadlines in the next month or so, then you don't have much choice. It's best to make sure that the whole application is as great as it can be - you can't afford to concentrate on the GMAT if that weakens the quality of the rest of your application.
If your deadlines are still a ways off or if you decide to postpone for a year, then you can think about taking the test again (if you think that's the right move for you).
Between those two options, I can't tell you what to do. You may want to talk to an admissions counselor to help you brainstorm which direction to go on this; a counselor would have a better idea of what questions to ask and what factors to consider in making the best decision for yourself.
You do mention continuing to have some timing problems on the verbal; you ran out of time on the last couple and had to do the last RC passage too quickly. The likelihood is that you got a number of those problems wrong and that obviously would have impacted your score negatively. I really wish that we could have the data regarding how you did on each question - including how much time you spent - because I'm worried about the way in which you might have tried to fix your timing problem.
I mentioned upthread that it typically takes longer than you had to fix timing problems. What happens a lot of the time is this: people know they're too slow, so naturally they try to speed up on some questions. They feel most comfortable speeding up on questions that they understand / feel comfortable with, so that's where they speed up. On those questions (which they used to get mostly right), they start to make more careless mistakes. They still spend too much time on the "too hard" questions, and they still mostly get those wrong, as they were before. They finish the test on time (or almost on time), but at the expense of questions they might have gotten right, which still keeps their score down.
The questions you actually want to sacrifice are the "too hard" ones - you're mostly getting them wrong anyway, so you want to get them wrong faster. But it takes practice to identify them accurately and deal with them effectively - typically more time than you had. I'm thinking that this might have been part of your problem - in which case, there is reason to believe that you could improve upon your score with adequate work / time. (Though, still, getting to a 40 in verbal would take a lot more than fixing the timing problem.)
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Stacey Koprince
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Manhattan GMAT
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