Construction of bars seen around extravagant home (7)
I believe the answer is:
cottage
'construction' is the definition.
(cottage is a kind of construction)
'bars seen around extravagant home' is the wordplay.
'bars' becomes 'cage' (I've seen this before).
'seen around' means one lot of letters goes inside another.
'extravagant home' becomes 'ott' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'cage' placed around 'ott' is 'COTTAGE'.
'of' is the link.
Can you help me to learn more?
(Other definitions for cottage that I've seen before include "Rural house" , "Small house with a single storey" , "simple accommodation" , "Modest accommodation" , "Small place" .)