Fantasy vs. Reality

Every so often, I get asked what the difference is between writing fantasy and writing realistic fiction. It's a pretty good question, though since I've never written anything that wasn't science fiction or fantasy, I'm not sure why anyone expects me to know. (Of course, I have opinions on just about everything, but that's another matter.)

There are actually several answers to this question, depending on what sort of fantasy one wants to write. In modern urban fantasy or magical realism, for i...