I definitely agree with Rich's input. At the end of the day, every school will look at the complete package to determine admission. Yes, the GMAT is an important part, but that doesn't mean it is everything.
In terms of the retake there are a few things you should consider before going forward (this is just what I thought about before my retake):
1. Are you willing to study again?
As you mentioned, you may have to study for another two months, which is both good and bad. By the end of the two months (assuming you study consistently), you will likely have a much better understanding of the material, and thus score higher. But, two months will fly by, and the last thing you want to do is retake without significant prep and not improve your score or score lower. Thus, if you do reschedule, do NOT take studying too lightly.
2. Do you usually have test anxiety?
If yes, then this is probably why your score was lower than usual. But this CAN be overcome. Your mental state is just as important for this exam as the knowledge you have. Any little bit of stress or worry can throw you off. Maybe something happened at work the week before the exam. If this is the case, a higher score may certainly be within your reach.
3. Is there any reason to believe your CATs were not realistic?
Besides the obvious point that nobody knows the true GMAC algorithm, did you take your CATs under the same time pressure and setting? If you would take longer than an 8 minute break and skip the AWA and IR sections, then your CATs may not be realistic. Just another thing to consider.
4. How are you going to prep going forward?
It's one thing to commit to more prep, but another to lay out your plan. At a 700, you are already scoring higher than 90% of test takers. What is your concrete plan to boost this? Maybe a test prep company? Maybe one with a score improvement guarantee (
Magoosh has 50 points as long as you complete everything and many others offer something along these lines).
5. How much did you study the past 10 weeks?
If studying was on and off, then there may be serious room for improvement. Maybe you took a few breaks or were distracted while studying. Ultimately, you need to determine how effective your past studying was.
Just remember, with a retake you know how the entire process will be on test day. You will know the palm scans, where the bathrooms are, the entire room layout, etc... and all of this works toward your advantage. When I retook, I saw the exact same people working and remembered them from my first exam. This level of familiarity should help put you at ease the second time around.
There are tons or retake success stories out there and it is possible to boost your score on a retake. Most of it is really based on how much time you will have and the effort you can put in. More free time and effective studying time will improve your chance at success the next time around. Just remember to keep this exam in perspective. It is just one aspect of the application, and probably not even the most important aspect.
Best of luck!