Advise on home buying

[Scottie Beard]

Have a question that I am hoping to get some insight on. I am buying my property in Oregon. This property has been on the market for several months. I tell my agent what i want to offer and the agent replies back to me that they had spoken to the listing agent and the listing agent said that the seller had already rejected a cash offer for $7,000 less than the asking price. I find this hard to believe since the property has been on the market for at least 6 months. Can the listing agent do this? It doesn't seem ethical to me but this is also my first go round on this. Any advice would be wonderful. Thanks in advance.