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I have given GMAT twice and scored 500, 560. I plan to take it again. My problem area is verbal. Do you think if I score above 700 after these results, I will have a decent chance in a top tier school?
I don't know of a school in the world where a 700 isn't a very competitive score. In the vast majority of schools a 700 will be above their average and will certainly help your chances.
Remember the GMAT score is just one of several factors schools consider for Acceptance. Unfortunately, the GMAT is the only standardized factor that allows schools to evaluate students on a level playing field.
Research your target schools. Find out what their GMAT range is for accepted students. If you can get within that range, then schools will look at your other attributes (GPA, work exp, essays, interview, etc.)