The problem was that the configure script was looking for the MagickWand.h file in this directory:
/home/bylifeweb/local/include/ImageMagick/wand/MagickWand.h
but the file is actually in this directory
/home/bylifeweb/local/include/ImageMagick-6/wand/MagickWand.h
To fix that I simply made a symlink from ImageMagick to ImageMagick-6 and ran the configure script again, it worked fine that time and I was then able to run make.
Libraries have been installed in: /home/bylifeweb/build/imagick-3.0.1/modules