Something ugly I observed, it could be said (7)
I believe the answer is:
eyesore
'something ugly' is the definition.
(term for an ugly building)
'i observed it could be said' is the wordplay.
I cannot really see how this works, but
'i' could be 'eye' (I've seen this in other clues) and 'eye' is found in the answer.
'it' could be 'e' ('e' can mean 'electronic' which is similar to 'IT') and 'e' is found within the answer.
The remaining letters 'sor' is a valid word which might be clued in a way I don't see.
This explanation may well be incorrect...
Can you help me to learn more?
(Other definitions for eyesore that I've seen before include "Ugly sight, not nice to see" , "terrible prospect" , "bad sight" , "Unpleasant sight" , "Blight" .)