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I'm wondering how much effort to put into looking for items that have "x% better chance to find magical items". The description says "magical". Does that mean only magical, or does it increase the chance to find rare and legendary items as well?

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possible duplicate of What does increased magic find do? –  Michel May 22 '12 at 19:08
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up vote 5 down vote accepted

YES

A magic item is any object that has magical powers inherent in it. Those are:

  • Blues (Magic)
  • Yellow (Rare)
  • Orange (Legendary)
  • Green (Tier/Set)

Web definitions

A magic item is any object that has magical powers inherent in it. These may act on their own or be the tools of the person or being whose hands they fall into. Magic items are commonly found in both folklore and modern fantasy

(Magic Item) An item imbued with magic to cause a spell-like effect.

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Magic Find in Diablo III

Magic Find increases the odds for found items (from monsters or objects) to be "higher quality". Higher quality items are more likely to be magical, rare, set, or legendary, with different odds for each type of item depending on the Monster Level dropping the item and the player's Magic Find percentage. Magic Find doesn't make items with higher item level to drop since monsters have a set of items they're capable of dropping (eg. the highest tier of items will only drop from monsters with Monster Level 63) nor does it increase the quantity of items dropped.

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Also What does increased magic find do?

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What makes you think "magic items" entails rare, legendary and tier/set items as well? The more logical interpretation is that "magic" denotes only the magic(blue) category. –  Emiam May 22 '12 at 18:28
    
@Emiam: Magic Find also existed in earlier Diablo games, and always affects the other categories too. Or to be D3 specific, I have magic find equip and am seeing more rares (yellow) than earlier. –  Alok May 22 '12 at 19:09
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Answered in my edit. –  Michel May 22 '12 at 19:09
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