When one of my characters becomes aware of a magical element, it might be because the world is wider than we assume it to be, but it might also be a reminder to pay attention to what is here already, hidden only because it's been forgotten.
I think a good writer is a mix of confidence (sure that what they're writing is going to appeal to their readers) and uncertainty (what if all these words are crap?). If you're too confident, you get an attitude that seeps through into your writing, affecting the characters and the story. If you're too uncertain, you'll never finish anything.
I find the characters in my head and the more I write about them, the better I get to know them.
My characters seem real because they are drawn from the realities of my life. I didn't have to research their pain; I just tapped into my own.
I'd say that any character or setting can be given a bit of an otherworldly sheen and be the better for it. The one thing I insist on with my own writing is that I won't let magic solve my characters' real world problems. The solutions have to come from the characters themselves.
Well, while I didn't have the more extreme experiences of some of my characters, I didn't exactly come from the most normal of households. Or rather, it was normal, in that dysfunctional families appear to be the norm.
As the new work fills my notebooks, I've come to realize that the characters in my stories were so real because I really did want to get close to people, I really did want to know them. It was just easier to do it on paper, one step removed.