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I would really need help to figure out this... I have just gotten my October score (157), which is way below my goal 163-165. I feel I have the potential to improve this 5-8 points by January.

My application materials are all ready to be sent, and I hear lots of comments that application should be put in as soon as possible. Should I put in my application now, and note that I am retaking? If so, how do I do that?

Or should I wait until when January score is available (which won't be until early February) to submit my application?

Any advice would be so appreciated! My top school is UC Berkeley.

If I were you I would calm wayyy down and focus on applying next cycle. If you surprise yourself with a 169 or something then January won't be too late to pull the trigger. You're going to mess up your LSAT prep with an artificial deadline like this.