Hi Rivergirl,
Your question about magical realism made me stop and think. By its nature, any magical realist world will resemble our own in most respects. But does it matter whether the magical element is accepted as commonplace (ie, not magic) by the residents of that world? Or can they be startled, as we would be, by its arrival?
Any proper literature professor would know far better than I. Still, from what I've found online it seems that critics haven't entirely resolved the question yet. The term is still relatively new, after all.
My personal opinion (definitely worth no more than $.02): the introduction of any fantastical element ought to be enough to qualify. If magic is a real phenomenon in your fictional world, call it magical realism for now. Your eventual agent will have more advice as you discuss how to pitch to publishers.